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Chicago, IL – November 2, 2023 – Zacks Market Edge 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/2176726/how-to-pick-stocks-during-a-sell-off )
How to Pick Stocks During a Selloff
Welcome to Episode #378 of the Zacks Market Edge Podcast.
(1:35) - What Should Investors Know About The Stock Market Movement Right Now?
(8:15) - Finding Stocks That Fit Into Your Portfolio: Breaking Down Vistra Corps Current Performance
(14:05) - Are The Magnificent 7 Still Working As A Defense Play?
(21:50) - Where Should Investors Be Looking For Long Term Investments?
(34:45) - How Low Can These Beaten Down Stocks Go?
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 joined by Zacks Associate Stock Strategist, Ethan Feller, to talk about how to pick stocks during a market sell-off.
The S&P 500 is down 10% from its recent highs, which is the definition of a correction. But with all the uncertainty on Wall Street about the economy and earnings, many investors can feel paralyzed.
Ethan lays out the case for the defensive stock picking strategy. This strategy looks for areas which have outperformed or have some level of safety, such as the company being a dividend aristocrat. Also, to cut the risk, investors might want to check out value stocks. They are, after all, called value for a reason.
Vistra is a large cap utility company which has bucked the recent weakness in the utility stocks. Shares of Vistra are up 41% year-to-date, easily outperforming the S&P 500 which is up 8.5% over the same time period.
Vistra is cheap, with a forward P/E of 9.2. It also pays a dividend, yielding 2.5%.
Should a utility like Vistra be on your watch list?
Alphabet is one of the Magnificent 7 stocks. It's not a secret. But could it be a stock to hide out in during stock market weakness?
Ethan thinks so as Alphabet is one of the cheapest stocks of the Magnificent 7, with a forward P/E of 21.8. Shares of Alphabet are up 40.6% year-to-date, but have come off recent highs on nervousness about the earnings report.
Is the stock pullback a buying opportunity in Alphabet?
Chevron is a large integrated oil company which recently announced the billion dollar acquisition of Hess. Energy was the best performing sector of 2021 and 2022 but has struggled in 2023.
Chevron shares are down 18.8% year-to-date. It's cheap, with a forward P/E of 10 and a PEG ratio of just 0.8. Chevron is also a dividend aristocrat, which means it has both paid, and raised, its dividend every year for over 25 years. It's currently yielding 4.1%.
Tracey has owned Berkshire Hathaway in the Insider Trader portfolio for over a year. No, it wasn't Warren Buffett who bought shares in 2022, but the insider was one of the other directors.
Shares of Berkshire Hathaway are up 10.5% year-to-date but have pulled back from their 5-year high in recent weeks. It's down 2.6% over the last month.
Berkshire isn't cheap. It trades with a forward P/E of 21.3 and a PEG of 3.1.
If you're a fan of Buffett and value investing, should Berkshire Hathaway be on your watch list?
Block was one of the big winners of the pandemic, with its stock soaring during the reopening months. But this year the shares of Block are down 35.9%. And if you look at the 5-year chart, Block shares have declined 48.5%.
But even with the share decline, Block isn't cheap. It trades with a forward P/E of 23. However, earnings are expected to rise 69% this year and 36% next year. Yet it remains out of favor on Wall Street.
Block is expected to report earnings this week. Stay tuned.
What Else do you Need to Know About How to Pick Stocks During a Sell-Off?
Tune into this week's podcast to find out.
[In full disclosure, Tracey owns shares of CVX in her own personal portfolio.]
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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/performancefor information about the performance numbers displayed in this press release.
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Zacks Market Edge Highlights: Vistra, Alphabet, Chevron, Berkshire Hathaway and Block
For Immediate Release
Chicago, IL – November 2, 2023 – Zacks Market Edge 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/2176726/how-to-pick-stocks-during-a-sell-off )
How to Pick Stocks During a Selloff
Welcome to Episode #378 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 joined by Zacks Associate Stock Strategist, Ethan Feller, to talk about how to pick stocks during a market sell-off.
The S&P 500 is down 10% from its recent highs, which is the definition of a correction. But with all the uncertainty on Wall Street about the economy and earnings, many investors can feel paralyzed.
Ethan lays out the case for the defensive stock picking strategy. This strategy looks for areas which have outperformed or have some level of safety, such as the company being a dividend aristocrat. Also, to cut the risk, investors might want to check out value stocks. They are, after all, called value for a reason.
5 Stocks for the Watch List
1. Vistra Corp. (VST - Free Report)
Vistra is a large cap utility company which has bucked the recent weakness in the utility stocks. Shares of Vistra are up 41% year-to-date, easily outperforming the S&P 500 which is up 8.5% over the same time period.
Vistra is cheap, with a forward P/E of 9.2. It also pays a dividend, yielding 2.5%.
Should a utility like Vistra be on your watch list?
2. Alphabet Inc. (GOOGL - Free Report)
Alphabet is one of the Magnificent 7 stocks. It's not a secret. But could it be a stock to hide out in during stock market weakness?
Ethan thinks so as Alphabet is one of the cheapest stocks of the Magnificent 7, with a forward P/E of 21.8. Shares of Alphabet are up 40.6% year-to-date, but have come off recent highs on nervousness about the earnings report.
Is the stock pullback a buying opportunity in Alphabet?
3. Chevron Corp. (CVX - Free Report)
Chevron is a large integrated oil company which recently announced the billion dollar acquisition of Hess. Energy was the best performing sector of 2021 and 2022 but has struggled in 2023.
Chevron shares are down 18.8% year-to-date. It's cheap, with a forward P/E of 10 and a PEG ratio of just 0.8. Chevron is also a dividend aristocrat, which means it has both paid, and raised, its dividend every year for over 25 years. It's currently yielding 4.1%.
Is this a buying opportunity in Chevron?
4. Berkshire Hathaway (BRK.B - Free Report)
Tracey has owned Berkshire Hathaway in the Insider Trader portfolio for over a year. No, it wasn't Warren Buffett who bought shares in 2022, but the insider was one of the other directors.
Shares of Berkshire Hathaway are up 10.5% year-to-date but have pulled back from their 5-year high in recent weeks. It's down 2.6% over the last month.
Berkshire isn't cheap. It trades with a forward P/E of 21.3 and a PEG of 3.1.
If you're a fan of Buffett and value investing, should Berkshire Hathaway be on your watch list?
5. Block, Inc. (SQ - Free Report)
Block was one of the big winners of the pandemic, with its stock soaring during the reopening months. But this year the shares of Block are down 35.9%. And if you look at the 5-year chart, Block shares have declined 48.5%.
But even with the share decline, Block isn't cheap. It trades with a forward P/E of 23. However, earnings are expected to rise 69% this year and 36% next year. Yet it remains out of favor on Wall Street.
Block is expected to report earnings this week. Stay tuned.
What Else do you Need to Know About How to Pick Stocks During a Sell-Off?
Tune into this week's podcast to find out.
[In full disclosure, Tracey owns shares of CVX in her own personal portfolio.]
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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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/performancefor information about the performance numbers displayed in this press release.