We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks Value Trader Investor Highlights: Bed Bath & Beyond, Macy's, JC Penney, Pier 1 and Gap
Read MoreHide Full Article
For Immediate Release
Chicago, IL – September 1, 2017 – 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/274016/should-you-be-buying-the-dirtcheap-retail-stocks)
Should You Be Buying Dirt-Cheap Retail Stocks?
Welcome to Episode #57 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.
Just a few months ago, it seemed like value investing was dead. Growth stocks kept rising, with no end in sight, as the major stock indexes hit new highs. It was even hard to find good quality value stocks.
But over the summer, several industries broke down which has brought some stocks that were overpriced previously, back into the value fold.
Tracey has talked about all three industries recently: the restaurants, the exploration and production energy companies, and now she takes a look at the retailers.
Will All Shopping Be Done on Amazon?
Could there be a more hated industry than the retailers right now?
Many investors believe that the traditional retailers are doomed. The most extreme scenario is that they ALL go out of business and Amazon ends up ruling the retail world in the United States.
But realistically, most of us know that’s not going to be the case. Humans are social. We like shopping. There’s a reason the Grand Bazaar has been operating in Istanbul for hundreds of years.
However, there’s no doubt that online shopping has been disruptive in the industry. There are clearly winners and losers.
With the stocks selling off this summer, value investors should be looking at the industry for buying opportunities.
Screening for Retail Value
Tracey did screen for retail stocks with a Zacks Rank of #1 (Strong Buy), #2 (Buy) or #3 (Hold) in the retail sector with P/Es under 10. She wanted them dirt cheap.
17 companies made it through the screen. She expanded it to companies with P/Es under 15, still cheap compared to the S&P 500.
55 companies made the cut including the auto retailers, pharmacies, furniture retailers and department stores.
She narrowed it down to those most investors have heard of and are familiar with.
Are These Dirt Cheap Retail Stocks a Buy?
1. Bed Bath & Beyond (NASDAQ: – Free Report)has a forward P/E of 6.9. Should value investors be intrigued?
2. Macy’s (NYSE: (M - Free Report) – Free Report)is trading with a forward P/E of just 6.3. It also pays a dividend, currently yielding 7.1%. There’s no guarantee on the dividend’s “safety” of course, but with fundamentals like that, is it time to add it to the short list?
3. JC Penney (NYSE: – Free Report)fell to 42-year lows after its earnings report. It’s profitable again and its P/E is now 8.9. Is this a risk worth taking?
4. Pier 1 (NYSE: – Free Report)has seen its shares plunge about 50% in 2017. Shares now have a forward P/E of 8.7. It has been in a turnaround for a number of years, is it finding success?
5. Gap (NYSE: (GPS - Free Report) – Free Report)has a forward P/E of just 11.3 and pays a dividend yielding 3.9%. But its shares are actually UP on the year, having risen 5%. Is Banana Republic finally finding its feet after a few rocky years?
Tracey also looked at the insider buying at these, and several other, cheap retailers.
Are the Insiders Sending a Signal by Buying?
She uses insider buying as a signal in the beaten down industries that there may be value there.
After all, the insiders are putting their own money in too. They wouldn’t be buying if they didn’t have some belief in the company.
The insiders are buying in some of the retailers now. But which ones?
Should value investors be buying the retailers now?
Tune into this week’s podcast to find out.
Want more value investing insights from Tracey?
Value investors are a special breed of investor. They don’t follow the herd.
If that is your style of investing, be sure to check out Tracey’s weekly Value Investor service to receive more in-depth analysis on value companies and see which stocks she thinks are the best bargains now.
The Value Investor portfolio holds between 20 and 25 value stocks for the long haul.
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/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Value Trader Investor Highlights: Bed Bath & Beyond, Macy's, JC Penney, Pier 1 and Gap
For Immediate Release
Chicago, IL – September 1, 2017 – 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/274016/should-you-be-buying-the-dirtcheap-retail-stocks)
Should You Be Buying Dirt-Cheap Retail Stocks?
Welcome to Episode #57 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.
Just a few months ago, it seemed like value investing was dead. Growth stocks kept rising, with no end in sight, as the major stock indexes hit new highs. It was even hard to find good quality value stocks.
But over the summer, several industries broke down which has brought some stocks that were overpriced previously, back into the value fold.
Tracey has talked about all three industries recently: the restaurants, the exploration and production energy companies, and now she takes a look at the retailers.
Will All Shopping Be Done on Amazon?
Could there be a more hated industry than the retailers right now?
Many investors believe that the traditional retailers are doomed. The most extreme scenario is that they ALL go out of business and Amazon ends up ruling the retail world in the United States.
But realistically, most of us know that’s not going to be the case. Humans are social. We like shopping. There’s a reason the Grand Bazaar has been operating in Istanbul for hundreds of years.
However, there’s no doubt that online shopping has been disruptive in the industry. There are clearly winners and losers.
With the stocks selling off this summer, value investors should be looking at the industry for buying opportunities.
Screening for Retail Value
Tracey did screen for retail stocks with a Zacks Rank of #1 (Strong Buy), #2 (Buy) or #3 (Hold) in the retail sector with P/Es under 10. She wanted them dirt cheap.
17 companies made it through the screen. She expanded it to companies with P/Es under 15, still cheap compared to the S&P 500.
55 companies made the cut including the auto retailers, pharmacies, furniture retailers and department stores.
She narrowed it down to those most investors have heard of and are familiar with.
Are These Dirt Cheap Retail Stocks a Buy?
1. Bed Bath & Beyond (NASDAQ: – Free Report)has a forward P/E of 6.9. Should value investors be intrigued?
2. Macy’s (NYSE: (M - Free Report) – Free Report)is trading with a forward P/E of just 6.3. It also pays a dividend, currently yielding 7.1%. There’s no guarantee on the dividend’s “safety” of course, but with fundamentals like that, is it time to add it to the short list?
3. JC Penney (NYSE: – Free Report)fell to 42-year lows after its earnings report. It’s profitable again and its P/E is now 8.9. Is this a risk worth taking?
4. Pier 1 (NYSE: – Free Report)has seen its shares plunge about 50% in 2017. Shares now have a forward P/E of 8.7. It has been in a turnaround for a number of years, is it finding success?
5. Gap (NYSE: (GPS - Free Report) – Free Report)has a forward P/E of just 11.3 and pays a dividend yielding 3.9%. But its shares are actually UP on the year, having risen 5%. Is Banana Republic finally finding its feet after a few rocky years?
Tracey also looked at the insider buying at these, and several other, cheap retailers.
Are the Insiders Sending a Signal by Buying?
She uses insider buying as a signal in the beaten down industries that there may be value there.
After all, the insiders are putting their own money in too. They wouldn’t be buying if they didn’t have some belief in the company.
The insiders are buying in some of the retailers now. But which ones?
Should value investors be buying the retailers now?
Tune into this week’s podcast to find out.
Want more value investing insights from Tracey?
Value investors are a special breed of investor. They don’t follow the herd.
If that is your style of investing, be sure to check out Tracey’s weekly Value Investor service to receive more in-depth analysis on value companies and see which stocks she thinks are the best bargains now.
The Value Investor portfolio holds between 20 and 25 value stocks for the long haul.
Click here to learn more>>>
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.
Get the full Report on BBBY - FREE
Get the full Report on M - FREE
Get the full Report on JCP - FREE
Get the full Report on PIR - FREE
Get the full Report on GPS - FREE
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
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/performancefor information about the performance numbers displayed in this press release.