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Zacks Value Trader Highlights: Disney, Cisco and Bank of America

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For Immediate Release

Chicago, IL – August 28, 2020 – 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:

(https://www.zacks.com/stock/news/1048630/should-value-investors-ditch-value-and-buy-growth)

Should Value Investors Ditch Value and Buy Growth?

Welcome to Episode #203 of the Value Investor Podcast.

 

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

But in 2020, it’s really hard to be a value investor. Outside of a narrow span of about a month in March, when stocks sold off in the coronavirus sell-off, it’s been all growth again.

Over the last year the iShares Russell 1000 Value ETF (IWD - Free Report) has lost 8.95%.

But the iShares Russell 1000 Growth ETF (IWF - Free Report) has soared 22.99%.

It’s no better over the last 3 years with Growth returning 18.76% while the Value ETF had just a 1.68% average annual return over that same time.

Who wouldn’t want to chase those returns?

Value Investors Don’t Have to Choose

Have a diversified portfolio. Unless you run a “value only” mutual fund or hedge fund, you can invest in whatever you want.

That means value investors can own growth. Heck, Warren Buffett’s Berkshire Hathaway owns shares of Amazon now.

There are no rules in investing.

Have Guts? Look at Some Value Stocks

With everyone else chasing the growth stocks, it’s not a bad time to take a look at some of the beaten down value stocks.

1.       Walt Disney Company (DIS - Free Report) hasn’t returned to its former highs. With its parks still partly closed and its movie business mostly on hold, shares are still down 1.4% for the year. Is it a deal at these levels?

2.       Cisco Systems (CSCO - Free Report) beat earnings on its last earnings report, but the Street didn’t care, as shares sold off and are down 9% over the last month. It’s trading with a forward P/E of 13.5, which is well under the average forward P/E of the S&P 500 of 25.

3.       Bank of America (BAC - Free Report) continues to be one of the big bank stocks that is considered a value. It now has a forward P/E of 16, as its earnings have been cut. Shares are still down 27% year-to-date.

It takes guts to accumulate positions in stocks going nowhere while the growth stocks are soaring.

What else do you need to know about growth versus value in 2020?

Find out on this week’s podcast.

Looking for Stocks with Skyrocketing Upside?

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Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.

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