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Zacks Value Trader Highlights: Bed Bath & Beyond, Snap, E*TRADE, RH and Spirit
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For Immediate Release
Chicago, IL – December 7, 2018 – 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:
Welcome to Episode #120 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.
The major stock indexes had another big single day drop on Dec 4 with the Dow Industrials falling over 3%.
But if you thought that was the largest drop of the year, you’d be wrong.
That was the fourth single session where the Dow lost more than 3% in 2018. The other three days were Oct 10, when it was down 3.1%, Feb 5, when it lost 4.6% and Feb 8 when it was down 4.2%.
Yet, most investors probably don’t remember the other three days when there was a lot of pain in the portfolio.
Over the longer term, the volatility tends to get smoothed out.
However, with these big single day plunges, some stocks do go on sale. But how do investors find them?
Screening for Stocks on Sale
Sometimes you have to run several screens before finding what you’re looking for.
Tracey first ran a Zacks Predefined screen from Zacks.com on oversold stocks. It was geared more towards the “oversold” part and didn’t give her the focus on fundamentals.
It returned 34 stocks.
Bed Bath & Beyond and Snap Inc (SNAP - Free Report) were both results of that screen. Bed, Bath & Beyond is down 32% over the last past 3 months while Snap has plunged 41%.
But Snap still doesn’t have a P/E and Bed Bath & Beyond has been a value trap in 2018.
Starting over, Tracey screened for value stocks expecting to see some that had sold off but she would then also get the value fundamentals she sought.
This screen, which included forward and trailing P/Es, the Zacks Rank of #1 (Strong Buy) and #2 (Buy) , a Zacks Style Score for Value of A or B, the two top categories, and a Zacks Industry Rank in the top 50%.
It returned 36 stocks.
Here are three of the results.
Are These Value Stocks on Sale?
1. E*TRADE Financial is down 18% over the last past 3 months so it’s gone on “sale” at least in terms of its share price. In that same time period, the S&P 500 declined 6.8%.
2. RH (RH - Free Report) is down 9.4% over the prior 3 months so it is on sale compared to the S&P 500 but not by a lot. It also sports a forward P/E of 16 looking at 2019 projected earnings. That’s cheaper than the stock has been in the past. Is it on “sale”?
3. Spirit Airlines (SAVE - Free Report) is one of the few stocks in the screen that still has a value P/E of 15 but the shares are going the other direction, up. Shares have jumped 31% over the past 3 months as crude has plunged.
Is this the worst of the recent stock weakness or is more to come?
Should you hold out for an even bigger sale in stocks?
Find out the answer to these questions, and more, on this week’s podcast.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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 Trader Highlights: Bed Bath & Beyond, Snap, E*TRADE, RH and Spirit
For Immediate Release
Chicago, IL – December 7, 2018 – 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/341647/how-to-screen-for-stocks-on-sale)
How to Screen for Stocks on Sale
Welcome to Episode #120 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.
The major stock indexes had another big single day drop on Dec 4 with the Dow Industrials falling over 3%.
But if you thought that was the largest drop of the year, you’d be wrong.
That was the fourth single session where the Dow lost more than 3% in 2018. The other three days were Oct 10, when it was down 3.1%, Feb 5, when it lost 4.6% and Feb 8 when it was down 4.2%.
Yet, most investors probably don’t remember the other three days when there was a lot of pain in the portfolio.
Over the longer term, the volatility tends to get smoothed out.
However, with these big single day plunges, some stocks do go on sale. But how do investors find them?
Screening for Stocks on Sale
Sometimes you have to run several screens before finding what you’re looking for.
Tracey first ran a Zacks Predefined screen from Zacks.com on oversold stocks. It was geared more towards the “oversold” part and didn’t give her the focus on fundamentals.
It returned 34 stocks.
Bed Bath & Beyond and Snap Inc (SNAP - Free Report) were both results of that screen. Bed, Bath & Beyond is down 32% over the last past 3 months while Snap has plunged 41%.
But Snap still doesn’t have a P/E and Bed Bath & Beyond has been a value trap in 2018.
Starting over, Tracey screened for value stocks expecting to see some that had sold off but she would then also get the value fundamentals she sought.
This screen, which included forward and trailing P/Es, the Zacks Rank of #1 (Strong Buy) and #2 (Buy) , a Zacks Style Score for Value of A or B, the two top categories, and a Zacks Industry Rank in the top 50%.
It returned 36 stocks.
Here are three of the results.
Are These Value Stocks on Sale?
1. E*TRADE Financial is down 18% over the last past 3 months so it’s gone on “sale” at least in terms of its share price. In that same time period, the S&P 500 declined 6.8%.
2. RH (RH - Free Report) is down 9.4% over the prior 3 months so it is on sale compared to the S&P 500 but not by a lot. It also sports a forward P/E of 16 looking at 2019 projected earnings. That’s cheaper than the stock has been in the past. Is it on “sale”?
3. Spirit Airlines (SAVE - Free Report) is one of the few stocks in the screen that still has a value P/E of 15 but the shares are going the other direction, up. Shares have jumped 31% over the past 3 months as crude has plunged.
Is this the worst of the recent stock weakness or is more to come?
Should you hold out for an even bigger sale in stocks?
Find out the answer to these questions, and more, on this week’s podcast.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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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.