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Are Your Favorite Stocks Cheap?

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  • (1:30) - Under Armour misses earnings first time in 5 years!
  • (3:15) - Is Starbucks out of favor with investors? Tracey talks restaurants.
  • (5:48) - Apple and William & Sonoma: Are they value stocks?
  • (10:40) - Stock ticker summary

Welcome to Episode #28 of the Value Investor Podcast

Every week, Zacks value stock strategist and the Editor of Zacks Value Investor portfolio, Tracey Ryniec, talks about all things happening in the value stock universe, including her top stock picks.

It’s earnings season so that means some stocks will get a boost off their reports, and others will get sold off. These days, an earnings miss or a warning on guidance can be enough to send a stock down by the double digits.

If you’re a value investor, your first thought upon seeing a big sell off in a stock is probably “is that stock cheap enough for me to buy now?”

There have been some juicy sell offs already this earnings season. Additionally, some other “favorite” stocks that many people own seem out of favor or down on their luck.

Are These Favorite Stocks Cheap Enough to Be Values?

1.      Under Armour (UAA - Free Report) sold off 25% on its first earnings miss in 5 years. Shares are now down over 50% from their highs. But is it a value?

2.     Starbucks (SBUX - Free Report) went nowhere after its earnings reports. Shares also fell 9% in the last year, underperforming the market. The company appears to be out-of-favor with investors. (In full disclosure, Tracey is a long-term owner of it in her personal portfolio.) Should value investors be taking a look?

3.     Shake Shack Inc. (SHAK - Free Report) was once the darling of Wall Street but shares have fallen 19% over the last 2 years. Is the growth catching up with the valuation now?

4.     Apple (AAPL - Free Report) just reported earnings. Revenues surprised the Street. Is it one of the few technology stocks that might be a value stock?

5.     Williams-Sonoma Inc. (WSM - Free Report) owns one of the top brands in home furnishings: West Elm. But it’s other brands are struggling. It doesn’t report earnings until March but should value investors be keeping an eye on this retailer?

Investors should always dig deeper than simply the value fundamentals before making a decision to buy a stock. Does the company have rising earnings estimates? What does the growth picture look like?

Just because a company has always been an expensive growth stock doesn’t mean it always will be in the future.

Find out more about what Tracey thinks about the buying opportunities in these popular stocks in this week’s podcast.

Have a question for Tracey?

Do you have a value investing question for Tracey?

Is there a topic you really want covered on an upcoming Value Investor Podcast?

She wants to hear from you.

Send your questions for Tracey to her e-mail address at: podcast@zacks.com.

Want more insights from Tracey?

Check out her weekly Value Investor service to receive more in-depth analysis on value companies and see which stocks she thinks are the best bargains now.

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