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Zacks Value Investor Highlights: Meta Platforms, Apple, Amazon, Netflix and Alphabet
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For Immediate Release
Chicago, IL – March 11, 2022 – 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/1880458/the-faang-stocks-values-or-traps)
FAANG Stocks: Values or Traps?
Welcome to Episode #272 of the Value Investor Podcast.
(1:00) - Are The FAANG Stocks Becoming Value Stocks?
(6:30) - Breaking Down The Performance of The FAANG Stocks: Should You Be Buying?
(26:20) - Big Takeaways From The FAANG: FB, AAPL, AMZN, NFLX, GOOGL
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
This podcast has often talked about the FAANG stocks, Meta Platforms, Apple, Amazon, Netflix and Alphabet, looking at whether they were cheap enough to buy or not.
But in 2022, all of the FAANG stocks have sold off, so this has produced an opportunity.
Are they values or traps?
Value Stocks Versus Traps
Remember, value stocks are usually stocks with low P/E or P/S ratios. They are usually being ignored by the Street in some way.
Value traps can also have low P/Es and be ignored. But they also usually have something else: declining earnings estimates.
Are the FAANG stocks expected to grow their earnings in 2022 or not?
FAANG Stocks: Values or Traps?
1. Meta Platforms
Meta Platforms is the worst performing FAANG stock of 2022, falling 42%. Over the last 2 years, Meta Platforms is up just 8.1%. That is underperforming the S&P 500, which is up 44% during the same period.
But after the sell-off, Meta Platform is cheap. It trades with a forward P/E of just 14.9.
Meta Platforms’ sales are still expected to grow double digits in 2022 and 2023.
Netflix was a pandemic winner as everyone was stuck at home.
But shares have sunk 40% year-to-date and even though it is one of the best performing stocks of the last 20 years, the shares are down 2% over the last 2 years.
Netflix is expected to grow sales by 12% in 2022 and another 13% in 2023.
This Zacks #4 (Sell) trades at a forward P/E of 31, which is “low” for Netflix historically.
Alphabet has been a big winner over the last two years, trailing only Apple in performance among the FAANG stocks. Shares are up 106% during that time.
But even Alphabet shares have sunk in 2022, falling as much as 12% before rebounding.
Alphabet’s PEG ratio has sunk to just 1.09. A PEG ratio under 1.0 usually indicates a company has both value and growth.
With 2022 sales expected to rise 17.6%, are earnings also expected to rise this year?
What else do you need to know about the FAANG stocks in 2022?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of FB, AMZN and GOOGL in her personal portfolio.]
Just Released: Zacks' 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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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Zacks Value Investor Highlights: Meta Platforms, Apple, Amazon, Netflix and Alphabet
For Immediate Release
Chicago, IL – March 11, 2022 – 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/1880458/the-faang-stocks-values-or-traps)
FAANG Stocks: Values or Traps?
Welcome to Episode #272 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.
This podcast has often talked about the FAANG stocks, Meta Platforms, Apple, Amazon, Netflix and Alphabet, looking at whether they were cheap enough to buy or not.
But in 2022, all of the FAANG stocks have sold off, so this has produced an opportunity.
Are they values or traps?
Value Stocks Versus Traps
Remember, value stocks are usually stocks with low P/E or P/S ratios. They are usually being ignored by the Street in some way.
Value traps can also have low P/Es and be ignored. But they also usually have something else: declining earnings estimates.
Are the FAANG stocks expected to grow their earnings in 2022 or not?
FAANG Stocks: Values or Traps?
1. Meta Platforms
Meta Platforms is the worst performing FAANG stock of 2022, falling 42%. Over the last 2 years, Meta Platforms is up just 8.1%. That is underperforming the S&P 500, which is up 44% during the same period.
But after the sell-off, Meta Platform is cheap. It trades with a forward P/E of just 14.9.
Meta Platforms’ sales are still expected to grow double digits in 2022 and 2023.
But what about earnings?
Is Meta Platforms a value or a trap?
2. Apple (AAPL - Free Report)
Even mighty Apple, which is up 125% over the last 2 years, has been weak in 2022.
Shares are down 8.4% year-to-date, and have been down as much as 10%, before bouncing.
It’s cheaper than it was in 2021, with a forward P/E that has fallen from 32 to 25.6. But Apple still isn’t a cheap stock.
Apple’s sales are expected to rise 8.5% in fiscal 2022 and another 6.8% in fiscal 2023.
Will Apple also grow its earnings this year as well?
3. Amazon (AMZN - Free Report)
Amazon has never been “cheap” on a P/E basis. But with shares down 17% year-to-date, and in the red over the last year, it now trades at just 53x.
For Amazon, that’s a “low” P/E.
Sales are expected to soar another 15% in 2022 and 17% in 2023.
But inflationary pressures, including rising energy prices, could have a big impact in 2022.
Is Amazon a value in 2022?
4. Netflix (NFLX - Free Report)
Netflix was a pandemic winner as everyone was stuck at home.
But shares have sunk 40% year-to-date and even though it is one of the best performing stocks of the last 20 years, the shares are down 2% over the last 2 years.
Netflix is expected to grow sales by 12% in 2022 and another 13% in 2023.
This Zacks #4 (Sell) trades at a forward P/E of 31, which is “low” for Netflix historically.
Is Netflix a value or a trap?
5. Alphabet (GOOGL - Free Report)
Alphabet has been a big winner over the last two years, trailing only Apple in performance among the FAANG stocks. Shares are up 106% during that time.
But even Alphabet shares have sunk in 2022, falling as much as 12% before rebounding.
Alphabet’s PEG ratio has sunk to just 1.09. A PEG ratio under 1.0 usually indicates a company has both value and growth.
With 2022 sales expected to rise 17.6%, are earnings also expected to rise this year?
What else do you need to know about the FAANG stocks in 2022?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of FB, AMZN and GOOGL in her personal portfolio.]
Just Released: Zacks' 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
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.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
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https://www.zacks.com/performance
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.