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Zacks Value Trader Highlights: Micron, Apple, Bank OZK, WW and Fossil

Zacks Equity Research

For Immediate Release

Chicago, IL – January 25, 2019 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:


Do You Have the Guts to Be a Value Investor?

Welcome to Episode #127 of the Value Investor Podcast

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service, shares some of her top value investing tips and stock picks.

It’s not easy being a value investor. Value investors buy when everyone else is running away. They buy when no one cares about a company anymore. They buy when everyone else is scared.

Often, value investors have to have guts to buy. They are swimming against the tide.

There’s no screen for finding stocks you have to have guts to buy. You just know them when you see them.

These 5 stocks are all cheap. But do you have to have guts to buy them?

5 Stocks That Look Like Values: But Are They?

1.       Micron MU has a cult-like devotion among shareholders and investors on social media. Shares are down 37% in the last 6 months. The earnings are also on the decline. They’re expected to drop 34% in fiscal 2019 and another 12% in fiscal 2020. It’s a Zacks Rank #5 (Strong Sell). But they’re still cheap, with a forward P/E of just 4.5. Does it take guts to buy it here?

2.       Apple AAPL is out of favor. What has happened to the cult of Apple? It has disappeared. Now, investors are fleeing the shares. They are down 20% in the last 6 months. It has a forward P/E of just 12.9. Is Apple now a true value stock?

3.       Bank OZK OZK was once one of the hottest banks in the US. But shares crashed about 50% in 2018 after the company took a rare write-down on some real estate assets. While shares have rebounded off the recent lows, they’re still cheap. Bank OZK has a forward P/E of just 9.5. Are the worries about the banks over done?

4.       WW WTW, formerly known as Weight Watchers, has seen the momentum glory and now is in the throws of the sell off. Shares are down 65% over the last 6 months. It has a forward P/E of just 9.7 even as earnings are expected to rise 23% in 2019. The Street is fleeing this wellness company but is it misplaced?

5.       Fossil FOSL has had a rough 5 years as fears about the popularity of old-fashioned watches combined with the exploding wearables market hit the shares. After rebounding in 2018, the shares are on the downward slide again, falling 38% in the last 6 months. With a forward P/E of 11.7, there’s no doubt that they’re cheap. Do you have to have guts to buy a watch manufacturer in 2019?

What else should you know about having the guts to buy value stocks?

Listen to this week’s podcast to find out.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Fossil Group, Inc. (FOSL) : Free Stock Analysis Report
Weight Watchers International Inc (WTW) : Free Stock Analysis Report
Bank OZK (OZK) : Free Stock Analysis Report
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