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Do You Have What it Takes to be a Value Investor?

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  • (0:50) - What is a value investor?
  • (4:00) - Where are the value sectors in the market?
  • (8:50) - Tracey's Top Stock Picks
  • (12:40) - Episode Round up - Stock Tickers
  • Podcast@Zacks.com

Welcome to Episode #35 of the Value Investor Podcast

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service, shares some of her top value investing tips and stock picks.

There has been a sharp sell-off in several sectors in 2017, but investors seem too scared to jump in and invest in them.

It takes a lot of guts to be a value investor. Controlling emotions isn’t easy.

Do you have what it takes?

Being a value investor means running in to buy when everyone else is fleeing. It usually means that the company is being overlooked by the Street. That can happen for any number of reasons even including the results of an election or a vote like the Brexit vote.

For example, look at the Mexican stocks. After the US election results in November 2016, Mexican stocks sold off sharply on fears about building the wall and re-negotiations of NAFTA. But in 2017, the stocks, including the Mexico ETF (EWW - Free Report) , have bounced back.

Did you think to buy on the 2016 panicked sell off?

If you did, you may be a value investor at heart.

Tracey discusses several industries you may want to keep an eye on for values, as they are struggling in 2017.

She also discusses 3 values stocks that have rising earnings estimates. These are Zacks Rank #1 (Strong Buy) stocks AND they are cheap.

Do you have the guts to dive in?

3 Zacks #1 Rank Value Stocks

1.      Best Buy (BBY - Free Report) is able to compete with Amazon. All retailers aren’t going under. Shares are cheap as retail is out of favor. It has a forward P/E of just 12.5.

2.     Dycom Industries (DY - Free Report) has employees in 500 field offices and provides services in construction and engineering. If there is a big infrastructure program, this could be a company to watch. It has a forward P/E of 16.6.

3.     PulteGroup (PHM - Free Report) is one of the largest home builders in America. The home builders have been out of favor since 2012. It’s cheap, with a forward P/E of just 10.5.

These three stocks also have P/S ratios under 1.0, which usually means a company is undervalued.

What else should you know about being a value investor?

Tune into this week’s podcast to find out.

Want more value investing insights from Tracey?

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

It holds between 20 and 25 value stocks for the long haul.

Click here to learn more.