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Welcome to Episode #376 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, yes, even on the video podcast, to talk about stocks that are selling off in 2023. While it seems like stocks have had a big rally thanks to the gains by the Magnificent 7 in the first half of the year, there are a lot of stocks that were pandemic winners which have not seen the same type of recovery in 2023.
Do their earnings outlooks justify the continued slide in the shares? Or are there some deals out there for investors willing to pick through the wreckage?
Tracey looks at their price and consensus charts and changes in the earnings estimates to see if the selling will end soon, or not.
Albemarle manufactures specialty chemicals, including lithium, which is used in electric vehicle batteries. Lithium prices have plunged in 2023, and that has hit Albemarle’s share price.
Shares of Albemarle are down 29.5% year-to-date and are down 33% over the last 2 years. It’s cheap, with a forward P/E of just 6.7. Analysts expect earnings to grow by 15.9% this year.
Albemarle shares will move with the price of lithium. Should investors take a chance after this sell-off?
2. Zoom Video Communications, Inc. (ZM - Free Report)
Zoom Video became a pandemic darling as work, and even just basic communications, had to switch online during COVID. But with the pandemic easing, so has the stock.
Shares of Zoom Video have plunged 76% over the last 2 years and are now back to the pre-pandemic levels. But in 2023, it’s down just 7%.
Earnings are expected to rise 6.6% in fiscal 2024. Zoom Video is cheap after the sell-off. It trades with a forward P/E of just 13.7.
Is Zoom Video a deal now?
3. Farfetch Limited
Farfetch is a platform for luxury fashion. It operates the Farfetch Marketplace internationally. During the pandemic, online retail boomed but it has slowed as stores have reopened.
Shares of Farfetch have plunged 95.7% over the last 2 years. In 2023, there hasn’t been much of a respite from the selling. The shares are down 65% year-to-date.
Earnings are expected to rise 35.9% this year to a loss of $0.59 from a loss of $0.92 last year. Because of the negative earnings, it doesn’t have a P/E.
Farfetch is trading under its 50-and 200-day moving averages and is near a 52-week low.
JD.com is a Chinese online retailer, marketplace and supply chain company.
Shares of JD.com have fallen 68.2% over the last 2 years. It’s down 53.9% in 2023 and recently hit new 52-week lows.
Over the last 5 years, shares are up just 12.5% versus 58% for the S&P 500. Analysts are bullish on earnings, expecting them to be up 10.5% in 2023 and 3.5% in 2024. JD.com is cheap with a forward P/E of 9.4.
Will value investors be jumping in to buy shares of JD.com soon?
PayPal shares have been sliding for 2 years. They’ve fallen 79% in that time period and do not show any signs of bottoming yet in 2023, as they’re down 21.7% year-to-date.
PayPal is now down 34.2% over the last 5 years while the S&P 500 is up 58% in that same period.
Yet analysts expect earnings to rise 19.9% this year and another 13.3% in 2024. Shares are cheap, with a forward P/E of 11.6.
Is it time to put PayPal on your watch list?
What Else do you Need to Know About Stocks that are on Sale?
Tune into this week’s podcast to find out.
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Stocks on Sale: How Low Will They Go?
Welcome to Episode #376 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, yes, even on the video podcast, to talk about stocks that are selling off in 2023. While it seems like stocks have had a big rally thanks to the gains by the Magnificent 7 in the first half of the year, there are a lot of stocks that were pandemic winners which have not seen the same type of recovery in 2023.
Do their earnings outlooks justify the continued slide in the shares? Or are there some deals out there for investors willing to pick through the wreckage?
Tracey looks at their price and consensus charts and changes in the earnings estimates to see if the selling will end soon, or not.
5 Stocks: How Low Will They Go?
1. Albemarle Corp. (ALB - Free Report)
Albemarle manufactures specialty chemicals, including lithium, which is used in electric vehicle batteries. Lithium prices have plunged in 2023, and that has hit Albemarle’s share price.
Shares of Albemarle are down 29.5% year-to-date and are down 33% over the last 2 years. It’s cheap, with a forward P/E of just 6.7. Analysts expect earnings to grow by 15.9% this year.
Albemarle shares will move with the price of lithium. Should investors take a chance after this sell-off?
2. Zoom Video Communications, Inc. (ZM - Free Report)
Zoom Video became a pandemic darling as work, and even just basic communications, had to switch online during COVID. But with the pandemic easing, so has the stock.
Shares of Zoom Video have plunged 76% over the last 2 years and are now back to the pre-pandemic levels. But in 2023, it’s down just 7%.
Earnings are expected to rise 6.6% in fiscal 2024. Zoom Video is cheap after the sell-off. It trades with a forward P/E of just 13.7.
Is Zoom Video a deal now?
3. Farfetch Limited
Farfetch is a platform for luxury fashion. It operates the Farfetch Marketplace internationally. During the pandemic, online retail boomed but it has slowed as stores have reopened.
Shares of Farfetch have plunged 95.7% over the last 2 years. In 2023, there hasn’t been much of a respite from the selling. The shares are down 65% year-to-date.
Earnings are expected to rise 35.9% this year to a loss of $0.59 from a loss of $0.92 last year. Because of the negative earnings, it doesn’t have a P/E.
Farfetch is trading under its 50-and 200-day moving averages and is near a 52-week low.
When will Farfetch bottom?
4. JD.com, Inc. (JD - Free Report)
JD.com is a Chinese online retailer, marketplace and supply chain company.
Shares of JD.com have fallen 68.2% over the last 2 years. It’s down 53.9% in 2023 and recently hit new 52-week lows.
Over the last 5 years, shares are up just 12.5% versus 58% for the S&P 500. Analysts are bullish on earnings, expecting them to be up 10.5% in 2023 and 3.5% in 2024. JD.com is cheap with a forward P/E of 9.4.
Will value investors be jumping in to buy shares of JD.com soon?
5. PayPal Holdings Inc. (PYPL - Free Report)
PayPal shares have been sliding for 2 years. They’ve fallen 79% in that time period and do not show any signs of bottoming yet in 2023, as they’re down 21.7% year-to-date.
PayPal is now down 34.2% over the last 5 years while the S&P 500 is up 58% in that same period.
Yet analysts expect earnings to rise 19.9% this year and another 13.3% in 2024. Shares are cheap, with a forward P/E of 11.6.
Is it time to put PayPal on your watch list?
What Else do you Need to Know About Stocks that are on Sale?
Tune into this week’s podcast to find out.