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Should You Invest in Your Passions?

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  • (0:25) - Can You Invest In Your Passion?
  • (3:10) - How has the WWE survived in the quickly changing market?
  • (8:45) - WWE Vs. UFC
  • (12:15) - Tracey takes a closer look at the WWE stock
  • (15:30) - Tracey's Movie Passion: Investing Ideas
  • (20:40) - WWE Continuing to expand
  • (23:05) - Episode Recap

Welcome to Episode #72 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is joined by Jim Giaquinto, Editor of the Zacks Ultimate, which is the service that combines all of Zacks trading services, to discuss their passions and whether you should be investing in them.

Those who follow Tracey on Twitter know that she is an avid follower of all things having to do with the weather including tornadoes, hurricanes, blizzards and record temperatures. In the podcast, she admits to some extreme behavior having to do with finding out about the weather. She is crazy about it.

But how to do you invest in that?

You don’t.

Which is why Tracey invited Jim to talk about his passion: the World Wrestling Entertainment , which is a publicly traded company.

If your passion actually trades as a stock, then that makes a perfect opportunity for you to buy into something you love.

When You Love Something, Should You Invest In It?

For 10 years around the office at Zacks.com, Jim has been talking about World Wrestling’s Wrestlemania and Royal Rumbles. He’s a big fan. He’s also one of the 1.5 million subscribers, as of the end of January 2017, who are paying $9.95 a month to get the streaming service.

Several years ago, many analysts thought the UFC would kill the WWE but here we are in 2017 and WWE’s earnings are expected to grow 26% this year and another 13.5% in 2018.

For Tracey, in addition to the weather, her other passion is the movies. Like the WWE, there’s actually a way to invest in the movies through either studio stocks or the movie theater chains.

But just because you can, should you?

4 Ways to Invest in the Movies

1.      Cinemark (CNK - Free Report) has a forward P/E of 18 and earnings are expected to grow just 0.8% in 2017.

2.     Regal Entertainment is trading with a forward P/E of 17. Earnings are expected to rise 11% in 2017.

3.     AMC Entertainment (AMC - Free Report) trades at nose bleed levels, with a forward P/E of 17. Earnings are expected to decline 23% in 2017.

4.     Lionsgate (LGF.A - Free Report) just missed out on the Best Picture Oscar, but it still captured quite a haul as its La La Land and Hell or High Water grabbed nominations and wins. Shares aren’t cheap. They trade with a forward P/E of 210.

Tracey and Jim discuss whether or not it’s a “good” idea to invest in your passions.

Should they buy these stocks?

Find out the answer to this and more on this week’s podcast.

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