(0:30) - Where Is The Bull Market Heading In 2022? (4:00) - Is It Too Good To Be True: Fraud Problems (12:45) - Stock Screener For Strong Stocks: Don’t Fight The Fed (24:00) - Episode Roundup: WPC, NYCB, ENB Podcast@Zacks.com
Welcome to Episode #299 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.
This week, Tracey is going solo to talk about where investors should be looking to invest now that the speculation in many asset classes appears to be peaking and the growth stocks are correcting.
There’s always a bull market somewhere.
Even in the 2000-2003 dot-com bust, when the NASDAQ fell 46%, there were winning stocks that outperformed.
How to Find the New Bulls
1. Look for industries that have rising earnings.
2. Look for companies that pay dividends as they usually have strong cash flow management.
3. Look for industries that will do well in a rising rate environment.
Tracey screened for companies with Zacks Ranks of #1 (Strong Buy), #2 (Buy) and #3 (Hold), that had a dividend yielding above 5% and earnings growth.
These are likely going to be companies that are the opposite of the growth stocks that are selling off.
3 Contrarian Stock Picks for 2022 1. W.P. Carey ( WPC Quick Quote WPC - Free Report)
W.P. Carey is one of the largest net lease REITs. It specializes in high quality single tenants in industrial, warehouse, office, retail and self-storage properties with long-term leases.
W.P. Carey pays a dividend yielding 5.3%.
Shares are up 17.4% in the last year but are still cheap, with a forward P/E of just 15.3.
W.P. Carey’s earnings are expected to rise 5.7% in 2021 and another 3.6% in 2022.
Is W.P. Carey a stock to hide out in during the growth sell-off?
2. New York Community Bancorp ( NYCB Quick Quote NYCB - Free Report)
New York Community Bancorp was founded in 1859 and serves the metro NY, New Jersey, Ohio, Florida and Arizona markets.
New York Community Bancorp has a market cap of $6 billion, so it’s not a small community bank.
It pays a dividend, currently yielding 5.1%.
Earnings are expected to jump 42.5% in 2021 and another 4.6% in 2022 yet New York Community Bancorp is cheap with a forward P/E of 10.2.
Shares are up 12.6% in the last month as the banks have rallied on the possibility of the Fed raising rates 4 times in 2022.
Should investors be diving into New York Community Bancorp before the Fed raises?
3. Enbridge Inc. ( ENB Quick Quote ENB - Free Report)
Enbridge is a Canadian energy company that moves about 25% of the crude oil produced in North America and 20% of the natural gas consumed in the United States.
Enbridge operates pipelines, storage and is in renewable energy.
Earnings are expected to rise another 9.8% in 2022 after jumping 23.2% in 2021.
Enbridge shares are still attractive, with a forward P/E of 17.
It pays out the highest dividend of the three, with a yield of 6.5%.
Shares are up 7.9% in 2022, even as the rest of the stock market has slumped.
Should investors hide out in Enbridge in 2022?
What Else Should You Know About Finding Stocks Outside of the Growth Universe?
Tune into this week’s podcast to find out.