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 Investor Highlights: AdvanSix, El Pollo Loco, Caleres, SPDR S&P 600 and Vanguard Small Cap Value
Read MoreHide Full Article
For Immediate Release
Chicago, IL – April 6, 2018 – Zacks Value Investor 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/298047/how-small-investments-can-add-up-to-big-bucks)
How Small Investments Can Add Up to Big Bucks
Welcome to Episode #87 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.
It was written by Paul Merriman, a founder of Merriman Investment Advisors, who has written and podcasted about retirement, personal finance and value stocks for years.
That article has a great title, right?
Other than winning the lottery, who doesn’t want an apparently easy way to become rich?
The article explains that if you started in 1970 with $1,000, and increased it about 3% annually due to inflation, after 48 years invested in a basic S&P 500 index fund, you would have had $1.9 million.
Merriman also lists the returns on various other types of portfolios over the same period with the all value ETF portfolio giving the best results.
After investing $104,408 and being patient for 48 years, that investor in small cap value stocks would have had $4.4 million.
The Magic of Compounding
You don’t have 48 years to wait to get to a million dollars?
No one said getting to a million dollars in a portfolio was easy. But you’re certainly not going to get there without starting.
And what the article really points out is that small investments can become big amounts decades down the road simply due to the magic of compounding.
Time is your best weapon.
The Power of Small Cap Value
Historically, small cap value stocks have outperformed all other equity classes.
Obviously, past performance does not guarantee future results. But for many value investors, value still holds out the most promise.
Where should you start if you’re interested in the small cap stocks?
Tracey ran a screen looking for companies with a market cap under $1.5 billion, with classic valuations including a P/E under 15, a P/B under 3 and a P/S ratio under 1.0.
She then combined it with a Zacks Rank of #1 (Strong Buy), #2 (Buy) or #3 (Hold).
There were 123 stocks in this screen. That should provide plenty of options.
However, for those who want to play the small caps by owning a larger collection of them, there’s also the basic small cap value ETFs.
5 Small Cap Value Stocks and ETFs
AdvanSix (ASIX - Free Report) is a manufacturer of nylon 6 resin. Full year 2017 sales rose 24%, with a 9% volume increase. It has a market cap of just $1 billion and a forward P/E of 10.6.
El Pollo Loco (LOCO - Free Report) is a fire grilled chicken chain with 475 restaurants, mostly in the western states, including California, Arizona, Nevada, Texas and Utah. While same-restaurant-sales rose 1.4% in the fourth quarter, the company guided to flat comps in 2018. Shares are cheap, with a P/B ratio of just 1.3.
Caleres, Inc. (CAL - Free Report) is being ignored by Wall Street. This global footwear retailer, who owns the Famous Footwear, Naturalizer, Dr. Scholl’s and Bzees brands, among others saw sales up 8% in 2017. It trades with a P/S ratio of 0.5.
SPDR S&P 600 (SLYV - Free Report) is a small cap value ETF with an expense ratio of just 0.15%. It has 454 holdings and is yielding 1.6%.
Vanguard Small Cap Value (VBR - Free Report) holds 889 stocks in its portfolio and has an expense ratio of only 0.07%. 30% of the portfolio is in financials with another 20% in industrials. It’s yielding 1.8%.
Investing in small cap stocks takes perseverance, especially in markets like the current one where they are under performing large cap growth stocks.
What else should you know about the power of compounding and value stocks?
Listen to this week’s podcast to find out.
[In full disclosure, Tracey owns shares of VBR in her personal portfolio.]
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks’ has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Zacks Restaurant Recommendations:In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Value Investor Highlights: AdvanSix, El Pollo Loco, Caleres, SPDR S&P 600 and Vanguard Small Cap Value
For Immediate Release
Chicago, IL – April 6, 2018 – Zacks Value Investor 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/298047/how-small-investments-can-add-up-to-big-bucks)
How Small Investments Can Add Up to Big Bucks
Welcome to Episode #87 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.
Recently, Tracey saw an article on MarketWatch called “Save $1,000 a year. Retire with millions”.
It was written by Paul Merriman, a founder of Merriman Investment Advisors, who has written and podcasted about retirement, personal finance and value stocks for years.
That article has a great title, right?
Other than winning the lottery, who doesn’t want an apparently easy way to become rich?
The article explains that if you started in 1970 with $1,000, and increased it about 3% annually due to inflation, after 48 years invested in a basic S&P 500 index fund, you would have had $1.9 million.
Merriman also lists the returns on various other types of portfolios over the same period with the all value ETF portfolio giving the best results.
After investing $104,408 and being patient for 48 years, that investor in small cap value stocks would have had $4.4 million.
The Magic of Compounding
You don’t have 48 years to wait to get to a million dollars?
No one said getting to a million dollars in a portfolio was easy. But you’re certainly not going to get there without starting.
And what the article really points out is that small investments can become big amounts decades down the road simply due to the magic of compounding.
Time is your best weapon.
The Power of Small Cap Value
Historically, small cap value stocks have outperformed all other equity classes.
Obviously, past performance does not guarantee future results. But for many value investors, value still holds out the most promise.
Where should you start if you’re interested in the small cap stocks?
Tracey ran a screen looking for companies with a market cap under $1.5 billion, with classic valuations including a P/E under 15, a P/B under 3 and a P/S ratio under 1.0.
She then combined it with a Zacks Rank of #1 (Strong Buy), #2 (Buy) or #3 (Hold).
There were 123 stocks in this screen. That should provide plenty of options.
However, for those who want to play the small caps by owning a larger collection of them, there’s also the basic small cap value ETFs.
5 Small Cap Value Stocks and ETFs
AdvanSix (ASIX - Free Report) is a manufacturer of nylon 6 resin. Full year 2017 sales rose 24%, with a 9% volume increase. It has a market cap of just $1 billion and a forward P/E of 10.6.
El Pollo Loco (LOCO - Free Report) is a fire grilled chicken chain with 475 restaurants, mostly in the western states, including California, Arizona, Nevada, Texas and Utah. While same-restaurant-sales rose 1.4% in the fourth quarter, the company guided to flat comps in 2018. Shares are cheap, with a P/B ratio of just 1.3.
Caleres, Inc. (CAL - Free Report) is being ignored by Wall Street. This global footwear retailer, who owns the Famous Footwear, Naturalizer, Dr. Scholl’s and Bzees brands, among others saw sales up 8% in 2017. It trades with a P/S ratio of 0.5.
SPDR S&P 600 (SLYV - Free Report) is a small cap value ETF with an expense ratio of just 0.15%. It has 454 holdings and is yielding 1.6%.
Vanguard Small Cap Value (VBR - Free Report) holds 889 stocks in its portfolio and has an expense ratio of only 0.07%. 30% of the portfolio is in financials with another 20% in industrials. It’s yielding 1.8%.
Investing in small cap stocks takes perseverance, especially in markets like the current one where they are under performing large cap growth stocks.
What else should you know about the power of compounding and value stocks?
Listen to this week’s podcast to find out.
[In full disclosure, Tracey owns shares of VBR in her personal portfolio.]
Breaking News: Cryptocurrencies Now Bigger than Visa
The total market cap of all cryptos recently surpassed $700 billion – more than a 3,800% increase in the previous 12 months. They’re now bigger than Morgan Stanley, Goldman Sachs and even Visa! The new asset class may expand even more rapidly in 2018 as new investors continue pouring in and Wall Street becomes increasingly involved.
Zacks’ has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
Click here to access these stocks. >>
Zacks Restaurant Recommendations:In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »
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.
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/performance for information about the performance numbers displayed in this press release.