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Welcome to Episode #366 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 stocks that are at multi-year lows, instead of highs. A handful of well-known big cap stocks have sunk to new lows. Several are even at decade lows. Many long-term investors have been caught in the sell-off and are unsure about what to do.
As Zacks Kevin Cook always says about investing decisions: have a plan. Investors who have a plan, and execute it, will feel better about their choices and will regain a sense of control.
But many investors get paralyzed as a sell-off picks up steam, especially if they have owned the stock for years. Should you buy more shares, hold it and do nothing or sell it?
Verizon is a favorite of income investors because of its large dividend, which is currently yielding 7.7%.
But shares of Verizon have been sliding for the last 2 years. It’s down nearly 40% during that time and has sunk 13% year-to-date. Recently, there have been concerns about reporting that there may be lead-covered cables which may need to be replaced nationwide. Verizon is cheap, with a forward P/E of 6.7. But it hit a multi-decade low this week.
AT&T, like Verizon, is a favorite of income investors because it is paying a dividend yielding 7.7%.
But, just like Verizon, shares of AT&T have hit multi-decade lows this week on the uncertainty about the alleged lead-covered cables. Shares of AT&T have sunk 20.5% year-to-date but are down 31% over the last 2 years. Over the last 10 years, it hasn’t been any better. AT&T is down 46.5% while the NASDAQ was up 371% and the S&P 500 rose 217%.
AT&T is dirt cheap with a forward P/E of just 5.6. Should new investors be taking a chance on AT&T?
3M has paid a dividend for 100 years and has raised it 64 years in a row. It’s a dividend aristocrat. But shares of 3M hit new 10-year lows in May 2023 as the company announced it was entering into a class resolution about forever chemicals in the water for $10.3 billion, payable over 13 years.
Shares of 3M are still down 13.7% year-to-date. Over the last 10 years, they’re up just 9.3% while the S&P 500 has gained 217%. But 3M is now paying a dividend of 5.9% and it’s cheap, with a forward P/E of 11.7.
Disney has been a favorite investment for decades by parents wanting to buy stocks for their kids. But shares of Disney recently hit 9-year lows last seen in June 2014. Disney shares are up 58% over the last 10 years through July 17, 2023, but the S&P 500 is up 217% in that time.
Disney isn’t cheap, despite the stock sell-off. It trades with a forward P/E of 22.8.
Is this a buying opportunity in Disney even as it stumbles in 2023?
Walgreens Boots Alliance is another big cap company that has paid a dividend, first as Walgreens and now as Walgreens Boots Alliance, for more than 90 years. That dividend is currently yielding 6.5%.
But shares have been on the decline the last two years. It’s down 35% over those 2-years and recently traded at June 2012 levels. Over the last 23 years, from Jan 4, 2000 to July 17, 2023, shares of Walgreens Boots are up just 4.3% while the S&P 500 was up 224% in that same period. Walgreens Boots Alliance is cheap, with a forward P/E of 7.3.
Should value investors be considering Walgreens Boots Alliance?
What Else do you Need to Know about Losing Stocks?
Listen to this week’s podcast to find out.
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Losing Stocks: Buy, Hold, or Sell?
Welcome to Episode #366 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 stocks that are at multi-year lows, instead of highs. A handful of well-known big cap stocks have sunk to new lows. Several are even at decade lows. Many long-term investors have been caught in the sell-off and are unsure about what to do.
As Zacks Kevin Cook always says about investing decisions: have a plan. Investors who have a plan, and execute it, will feel better about their choices and will regain a sense of control.
But many investors get paralyzed as a sell-off picks up steam, especially if they have owned the stock for years. Should you buy more shares, hold it and do nothing or sell it?
5 Stocks Trading at Multi-Year Lows
1. Verizon Communications, Inc. (VZ - Free Report)
Verizon is a favorite of income investors because of its large dividend, which is currently yielding 7.7%.
But shares of Verizon have been sliding for the last 2 years. It’s down nearly 40% during that time and has sunk 13% year-to-date. Recently, there have been concerns about reporting that there may be lead-covered cables which may need to be replaced nationwide. Verizon is cheap, with a forward P/E of 6.7. But it hit a multi-decade low this week.
Is this a buying opportunity in Verizon?
2. AT&T Inc. (T - Free Report)
AT&T, like Verizon, is a favorite of income investors because it is paying a dividend yielding 7.7%.
But, just like Verizon, shares of AT&T have hit multi-decade lows this week on the uncertainty about the alleged lead-covered cables. Shares of AT&T have sunk 20.5% year-to-date but are down 31% over the last 2 years. Over the last 10 years, it hasn’t been any better. AT&T is down 46.5% while the NASDAQ was up 371% and the S&P 500 rose 217%.
AT&T is dirt cheap with a forward P/E of just 5.6. Should new investors be taking a chance on AT&T?
3. 3M Company (MMM - Free Report)
3M has paid a dividend for 100 years and has raised it 64 years in a row. It’s a dividend aristocrat. But shares of 3M hit new 10-year lows in May 2023 as the company announced it was entering into a class resolution about forever chemicals in the water for $10.3 billion, payable over 13 years.
Shares of 3M are still down 13.7% year-to-date. Over the last 10 years, they’re up just 9.3% while the S&P 500 has gained 217%. But 3M is now paying a dividend of 5.9% and it’s cheap, with a forward P/E of 11.7.
Is the worst news already priced into 3M?
4. The Walt Disney Company (DIS - Free Report)
Disney has been a favorite investment for decades by parents wanting to buy stocks for their kids. But shares of Disney recently hit 9-year lows last seen in June 2014. Disney shares are up 58% over the last 10 years through July 17, 2023, but the S&P 500 is up 217% in that time.
Disney isn’t cheap, despite the stock sell-off. It trades with a forward P/E of 22.8.
Is this a buying opportunity in Disney even as it stumbles in 2023?
5. Walgreens Boots Alliance (WBA - Free Report)
Walgreens Boots Alliance is another big cap company that has paid a dividend, first as Walgreens and now as Walgreens Boots Alliance, for more than 90 years. That dividend is currently yielding 6.5%.
But shares have been on the decline the last two years. It’s down 35% over those 2-years and recently traded at June 2012 levels. Over the last 23 years, from Jan 4, 2000 to July 17, 2023, shares of Walgreens Boots are up just 4.3% while the S&P 500 was up 224% in that same period. Walgreens Boots Alliance is cheap, with a forward P/E of 7.3.
Should value investors be considering Walgreens Boots Alliance?
What Else do you Need to Know about Losing Stocks?
Listen to this week’s podcast to find out.