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5 Ten-Year Value Superstars

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  • (0:45) - Value Stocks To Hold For A 10 Year Period
  • (4:30) - Tracey’s Top Stock Picks
  • (16:00) - Episode Roundup: UNH, UNP, HD, ROST, COST, JPM
  •                 Podcast@Zacks.com

 

Welcome to Episode #256 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 Oct 2021, value investors were feeling a bit demoralized after Tesla busted out yet another new all-time high.

Shares have gained over 26,000% in the last ten years, but now trade with a forward P/E of 172.

For most value investors, investing in Tesla is a non-starter. It’s fundamentals don’t match up with the price.

But value investors don’t have to settle for subpar returns either.

Over the last 10 years, there have been value stocks that have outperformed the S&P 500 and even, in some cases, outperformed the NASDAQ 100.

That hasn’t been easy to do, as the S&P 500 has gained 243.7% and the QQQ is up 471.9% in the last decade.

What are these amazing stocks?

5 Ten-Year Value Superstars

1.       UnitedHealth Group (UNH - Free Report) , the health insurer, was trading at just 10x earnings in 2011 so it was cheap. How much would an investor have made if they had dove into the shares just after the Affordable Care Act passed?

2.       Union Pacific (UNP - Free Report) , which was founded in 1862, is still relevant all these years later as transportation and logistics remains center stage in the economy. In 2011, UNP traded with a median forward P/E of 15.6. Who knew investing in railroads could be this good?  

3.       Home Depot (HD - Free Report) , the home renovation retailer, was trading with a median forward P/E of 16 in 2011, as the economy was coming out of the Great Recession. How many times have you been to their stores?

4.       Ross Stores (ROST - Free Report) , the discount retailer, was trading with a forward P/E of 16 in 2011. It’s been a great performer over the last 10 years but have you ever heard it mentioned on Stocktwits or on CNBC? 

5.       JPMorgan Chase (JPM - Free Report) is a surprise on this list. In 2011, it was one of the few big bank survivors of the financial crisis. It traded with a median dirt-cheap forward P/E of just 7.3. How did shares manage to beat the S&P 500 over the last decade? 

What else do you need to know about these value superstars?

Tune into this week’s podcast to find out how great their performance was in the last decade.

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