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Zacks Market Edge Highlights: SHOP, TWLO, PYPL, PFE and PINS

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For Immediate Release

Chicago, IL – December 1, 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/2191164/loser-stocks-buy-more-hold-or-sell

Loser Stocks: Buy More, Hold or Sell?

Welcome to Episode #382 of the Zacks Market Edge Podcast.

  • (1:30) - What Should You Do With Your Big Loser Stocks?
  • (6:10) - Learning From Microsoft’s Long Term Performance 
  • (13:30) - Strong Growth Stocks That Have Been Beaten Down: Should You Be Buying?
  • (25:00) - Will PayPal Rebound Anytime Soon?
  • (33:20) - Can The Pandemic Stock Winners Make A Comeback?
  • (47:30) - Episode Roundup: MSFT, SHOP, TWLO, PYPL, PFE, PINS, MELI, NVDA
  •                 Podcast@Zacks.com

  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 Stock Strategist and the editor of Zacks Technology Innovators newsletter, Andrew Rocco, to discuss what to do with your loser stocks. Many investors bought during the exciting go-go days of the pandemic, as stocks surged to new all-time highs. But many stocks, especially the technology growth stocks, plunged in 2022.

And now, many investors find themselves sitting on losses in those stocks. What should they do now? Buy more, simply hold onto it, or sell?

5 Stocks That Soared, and then Plunged: What Now?

1. Shopify Inc. (SHOP - Free Report)

Shopify was one of the big winners during the pandemic as the stock soared to all-time highs. But over the last two years, shares of Shopify have fallen 54%, even with a big rebound in 2023.

Is Shopify cheap? It trades with a P/E of 137, but earnings are expected to rise 1250% to $0.54 from $0.04 last year and they are expected to rise another 48.9% in 2024.

What should investors do if they are still in Shopify?

2. Twilio Inc. (TWLO - Free Report)

Twilio has given up its pandemic gains, and then some. Over the last 5 years, which included the pandemic, shares of Twilio are now down 30%. Over the last 2 years, they’ve fallen 77.4%.

Twilio has gotten cheaper on a valuation basis. It trades with a PEG ratio of just 0.7. A PEG ratio under 1.0 usually indicates value and growth.

Is Twilio oversold?

3. PayPal Holdings, Inc. (PYPL - Free Report)

PayPal was also a big pandemic winner, with the shares busting out to new all-time highs. But it has given that up, and more. Shares of PayPal are down 33% over the last 5 years and are down 19% year-to-date.

PayPal is cheap, on a valuation basis. It trades with a forward P/E of 11.3 as earnings are expected to rise 20.3% this year. That’s a true, classic value stock valuation.

Is PayPal a hidden value stock now?

4. Pfizer Inc. (PFE - Free Report)

Pfizer is the only company on this list that is not a technology company. But because Pfizer was the maker of one of the COVID vaccines, shares soared during the pandemic. However, shares of Pfizer have plunged this year, falling 41% year-to-date.

Returns haven’t been much better longer-term. Over the last 5 years, shares of Pfizer have fallen 32%.

Pfizer trades with a forward P/E of 19.5 and pays a dividend, yielding 5.5%.

What should long-term investors do with Pfizer?

5. Pinterest, Inc. (PINS - Free Report)

Pinterest has had a wild ride too. Over the last 2 years, shares of Pinterest have fallen 25% but this year they have rebounded 37%. Over the last 5 years, they have managed to remain in the green, adding 29.8%.

Pinterest trades with a PEG ratio of just 0.8 as earnings are expected to rise 72% this year and another 18.5% next year. It’s a Zacks Rank #1 (Strong Buy).

Is the worst over for social media stocks like Pinterest?

What Else Do You Need to Know About Loser Stocks?

Tune into this week’s podcast to find out.

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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.

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