Welcome to Episode #2 of the Zacks Value Investor Podcast.
Every week, Zacks value stock strategist, Tracey Ryniec, will discuss the hottest value investing topics.
In this episode, Tracey covers the value investor’s problem of determining whether or not a stock is actually cheap or if it’s a value trap. There are a lot of stocks that are trading with low P/E ratios but they’re not all great deals.
Tracey discusses:
1. What’s the definition of a value trap?
2. Tips on how you can easily distinguish between a cheap stock and a value trap
She provides 4 examples of a cheap stock. They all have forward P/Es well below the overall market and also well under the level she uses to find value stocks, which is a forward P/E of 15.
But are these also value traps?
1. Greenbrier (GBX - Free Report) : the railcar maker with a forward P/E of just 5.4
2. CF Industries (CF - Free Report) : nitrogen products manufacturer with a forward P/E of 14
3. General Motors (GM - Free Report) : automobile manufacturer with a forward P/E of 5.6
4. Apple (AAPL - Free Report) : technology gadget maker with a forward P/E of 11.7
If they are a value trap, should you be buying them anyway? Tune into this week’s podcast to find out.
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.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Welcome to Episode #2 of the Zacks Value Investor Podcast.
Every week, Zacks value stock strategist, Tracey Ryniec, will discuss the hottest value investing topics.
In this episode, Tracey covers the value investor’s problem of determining whether or not a stock is actually cheap or if it’s a value trap. There are a lot of stocks that are trading with low P/E ratios but they’re not all great deals.
Tracey discusses:
1. What’s the definition of a value trap?
2. Tips on how you can easily distinguish between a cheap stock and a value trap
She provides 4 examples of a cheap stock. They all have forward P/Es well below the overall market and also well under the level she uses to find value stocks, which is a forward P/E of 15.
But are these also value traps?
1. Greenbrier (GBX - Free Report) : the railcar maker with a forward P/E of just 5.4
2. CF Industries (CF - Free Report) : nitrogen products manufacturer with a forward P/E of 14
3. General Motors (GM - Free Report) : automobile manufacturer with a forward P/E of 5.6
4. Apple (AAPL - Free Report) : technology gadget maker with a forward P/E of 11.7
If they are a value trap, should you be buying them anyway? Tune into this week’s podcast to find out.
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.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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