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Zacks Value Trader Highlights: Dell Technologies, International Business Machines, Silicon Motion Technology, Zoom Video Communications and NetApp
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For Immediate Release
Chicago, IL – January 29, 2024 – Zacks Value Trader 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/2216570/should-you-quit-value-investing)
Should You Quit Value Investing?
Welcome to Episode #356 of the Value Investor Podcast.
(0:45) - Should You Continue To Buy Like A Value Investor?
(8:10) - Finding Strong Tech Stocks On Sale: Tracey’s Top Stock Picks
(21:15) - Episode Roundup: DELL, SIMO, ZM, NTAP, IBM
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Growth stocks are at it again. The Magnificent 7 stocks, some of the world's largest companies, are seemingly hitting new highs nearly daily. The S&P 500, of which the Mag 7 now makes up 29%, has hit new highs 6 sessions in a row.
Meanwhile, value stocks are mostly lagging. Banks, one of the cheapest industries, rallied to end 2023 but have been quiet in 2024 despite posting solid earnings reports. Energy, another cheap sector, under performed last year and has started off 2024 with more of the same.
Should value investors quit value and dive into growth? Or should value investors seek out value stocks in the hot sectors, like technology?
Screening for Cheap Tech Stocks
Tracey did a basic screen to look for cheap value stocks. Using the Zacks.com stock screening tool, she added the Computer and Technology Sector, the Zacks Ranks of #1 (Strong Buy) and #2 (Buy), which are the top Zacks ranks, and a forward P/E of 20 or less.
This screen returned 37 stocks.
What was on the list? Many hardware technology companies, which tend to be cheaper than software.
Dell is a large cap tech company, with a market cap of $58.6 billion. Shares of Dell have soared 104% in the last year, but it is still cheap. It trades with a forward P/E of just 12.4.
Dell pays a dividend, yielding 1.8%. It's a Zacks Rank #2 (Buy) stock.
After the big rally, is it too late to consider buying Dell?
2. International Business Machines Corp. (IBM - Free Report)
IBM is a large cap tech company, with a market cap of $173 billion. Shares are up 23% in the last year.
IBM is trading under 20x, but it's not that cheap at 17.7x. Investors have always liked IBM for its big dividend, currently yielding 3.8%.
Silicon Motion is a small cap, with a market cap of $2.1 billion. Shares have struggled over the last year, and are down 5% during that time.
Silicon Motion isn't dirt cheap, with a forward P/E of 19.3. But it does pay an attractive dividend, currently yielding 3.1%. Silicon Motion is a Zacks Rank #2 (Buy).
Should Silicon Motion be on your short list?
4. Zoom Video Communications, Inc. (ZM - Free Report)
Zoom Video is a big cap with a market cap of $20.5 billion. Shares have struggled over the last year, and are down 0.6% during that time.
Zoom Video is cheap, with a forward P/E of 14. It does not pay a dividend. Zoom Video is a Zacks Rank #1 (Strong Buy).
NetApp is a mid-cap company with a market cap of $18.4 billion. Shares are up 33% over the last year. NetApp is still cheap, with a forward P/E of just 14.4.
NetApp also pays a dividend, currently yielding 2.3%. It's a Zacks Rank #2 (Buy).
Should NetApp be on your watch list?
What Else Do You Need to Know About Value Investing in 2024?
Tune into this week's podcast to find out.
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.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
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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 Value Trader Highlights: Dell Technologies, International Business Machines, Silicon Motion Technology, Zoom Video Communications and NetApp
For Immediate Release
Chicago, IL – January 29, 2024 – Zacks Value Trader 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/2216570/should-you-quit-value-investing)
Should You Quit Value Investing?
Welcome to Episode #356 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Growth stocks are at it again. The Magnificent 7 stocks, some of the world's largest companies, are seemingly hitting new highs nearly daily. The S&P 500, of which the Mag 7 now makes up 29%, has hit new highs 6 sessions in a row.
Meanwhile, value stocks are mostly lagging. Banks, one of the cheapest industries, rallied to end 2023 but have been quiet in 2024 despite posting solid earnings reports. Energy, another cheap sector, under performed last year and has started off 2024 with more of the same.
Should value investors quit value and dive into growth? Or should value investors seek out value stocks in the hot sectors, like technology?
Screening for Cheap Tech Stocks
Tracey did a basic screen to look for cheap value stocks. Using the Zacks.com stock screening tool, she added the Computer and Technology Sector, the Zacks Ranks of #1 (Strong Buy) and #2 (Buy), which are the top Zacks ranks, and a forward P/E of 20 or less.
This screen returned 37 stocks.
What was on the list? Many hardware technology companies, which tend to be cheaper than software.
5 Cheap Tech Stocks with High Zacks Rank
1. Dell Technologies Inc. (DELL - Free Report)
Dell is a large cap tech company, with a market cap of $58.6 billion. Shares of Dell have soared 104% in the last year, but it is still cheap. It trades with a forward P/E of just 12.4.
Dell pays a dividend, yielding 1.8%. It's a Zacks Rank #2 (Buy) stock.
After the big rally, is it too late to consider buying Dell?
2. International Business Machines Corp. (IBM - Free Report)
IBM is a large cap tech company, with a market cap of $173 billion. Shares are up 23% in the last year.
IBM is trading under 20x, but it's not that cheap at 17.7x. Investors have always liked IBM for its big dividend, currently yielding 3.8%.
IBM is a Zacks Rank #2 (Buy) stock.
Should value investors be considering IBM?
3. Silicon Motion Technology Corp. (SIMO - Free Report)
Silicon Motion is a small cap, with a market cap of $2.1 billion. Shares have struggled over the last year, and are down 5% during that time.
Silicon Motion isn't dirt cheap, with a forward P/E of 19.3. But it does pay an attractive dividend, currently yielding 3.1%. Silicon Motion is a Zacks Rank #2 (Buy).
Should Silicon Motion be on your short list?
4. Zoom Video Communications, Inc. (ZM - Free Report)
Zoom Video is a big cap with a market cap of $20.5 billion. Shares have struggled over the last year, and are down 0.6% during that time.
Zoom Video is cheap, with a forward P/E of 14. It does not pay a dividend. Zoom Video is a Zacks Rank #1 (Strong Buy).
Is Zoom Video on sale in 2024?
5. NetApp, Inc. (NTAP - Free Report)
NetApp is a mid-cap company with a market cap of $18.4 billion. Shares are up 33% over the last year. NetApp is still cheap, with a forward P/E of just 14.4.
NetApp also pays a dividend, currently yielding 2.3%. It's a Zacks Rank #2 (Buy).
Should NetApp be on your watch list?
What Else Do You Need to Know About Value Investing in 2024?
Tune into this week's podcast to find out.
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 >>
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
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.
Media Contact
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https://www.zacks.com/performance
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.