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Welcome to Episode #445 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.
In 2003, McDonald’s was struggling and the stock hit a multi-year low, trading at around $13 a share. Tracey thought it was a “deal” but didn’t buy shares. It turns out that it would have been a great time to buy the stock, as McDonald’s is trading at $264 a share all these years later.
Recently, there has been talk about other well-known brands where their stock is hitting decades lows.
But how do you know if a stock which is hitting multi-year lows is a true value or a trap?
Don’t Be Fooled: The Definition of a Value Versus a Trap
It’s easy to immediately think a stock is a value if it’s hitting multi-year lows. But it’s not the stock price which determines the value, it’s the earnings.
A stock is a true value if the earnings are expected to grow year-over-year and it is cheap on a price basis.
Additionally, investors should look at whether the analysts are cutting, or raising, earnings estimates on that company. Cuts to earnings estimates can signify that the company may be struggling.
Investors really need to look at each company on a case-by-case basis.
Whirlpool is a home appliance company which manufactures the brands Whirlpool, KitchenAid, JennAir, Maytag, Amana, Brastemp, Consul, and InSinkErator. In business for 115 years, Whirlpool has struggled in the last few years as the housing market has slowed.
Earnings are expected to decline another 59.4% in 2026 after declining in 2025. Analysts do see a turnaround in 2027, with earnings forecast to jump 83%. However, that’s coming off a low level.
In May 2025, Whirlpool cut its quarterly dividend to $0.90 from $1.75 per share. However, the shares have sunk again in 2026, which means even the cut dividend is now yielding 9.8%.
Shares of Whirlpool are down 82.5% to 5-year lows. It trades with a forward price-to-earnings (P/E) ratio of 22. A P/E ratio under 15 is considered to be a value.
Shares of Nike continue to hit new multi-year lows before its June 30, 2026, fourth quarter earnings report. Shares of Nike are down 73.5% in the last 5 years.
Earnings fell 45.3% in fiscal 2025 and are expected to fall 31% in fiscal 2026. It’s in a turnaround. Nike recently hired a new CFO.
Nike isn’t cheap on a P/E basis yet. It’s trading with a forward P/E of 22.6. A P/E under 15 is considered to be a value.
Nike pays a dividend, which has not been cut, of $1.64. It is yielding 3.8%.
Wendy’s is a well-known American restaurant chain. Shares of Wendy’s recently hit 5-year lows, falling 68.4% in that period. Although, on the date that Tracey recorded this podcast, the shares were up big on news of a new CFO.
Wendy’s has a new management team with a new CEO and CFO. They had previously been together at Potbelly and had grown revenue to $600 million from $338.9 million over a 5-year period. Can they do it again at Wendy’s?
Earnings fell 12% in 2025 and are expected to decline another 35.2% in 2026.
Wendy’s is cheap, with a forward P/E of 13.6. A P/E under 15 is considered a value.
Last year, Wendy’s cut its quarterly dividend to $0.14 from $0.25. It is currently yielding 7.1%, even with the stock rallying this week.
Tractor Supply is the largest rural retailer in the United States. After a strong showing during the pandemic, Tractor Supply is facing competitive pressures.
This year, shares of Tractor Supply have plunged 38.5% to new 5-year lows. While earnings are expected to rise 4.4% in fiscal 2026, six earnings estimates have also been cut for the year in the last 60 days. The analysts are bearish.
Tractor Supply is cheap, with a forward P/E of 14.2. A P/E under 15 usually indicates value.
It also pays a dividend, which is yielding 3.2%. Tractor Supply has been raising the dividend each year as well. It raised the quarterly dividend $0.01 to $0.24 in Feb 2026.
Adobe is a leading software company. On June 11, 2026, it reported its fiscal second quarter 2026 results. Adobe saw record revenue of $6.6 billion, up 13% year-over-year.
Earnings are expected to grow 15.4% in fiscal 2026 after jumping 13.7% in fiscal 2025. After the Q2 earnings report, eleven earnings estimates were raised for fiscal 2026 and none were cut. The analysts are bullish about the rest of this year.
Adobe is cheap. It trades with a forward P/E of 8.1. A P/E under 10 is considered to be deep value.
Shares of Adobe are down 44.7% year-to-date and recently hit new 5-year lows, losing 66.6% during that time.
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5 Stocks on Sale: Values or Traps?
Key Takeaways
Welcome to Episode #445 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.
In 2003, McDonald’s was struggling and the stock hit a multi-year low, trading at around $13 a share. Tracey thought it was a “deal” but didn’t buy shares. It turns out that it would have been a great time to buy the stock, as McDonald’s is trading at $264 a share all these years later.
Recently, there has been talk about other well-known brands where their stock is hitting decades lows.
But how do you know if a stock which is hitting multi-year lows is a true value or a trap?
Don’t Be Fooled: The Definition of a Value Versus a Trap
It’s easy to immediately think a stock is a value if it’s hitting multi-year lows. But it’s not the stock price which determines the value, it’s the earnings.
A stock is a true value if the earnings are expected to grow year-over-year and it is cheap on a price basis.
Additionally, investors should look at whether the analysts are cutting, or raising, earnings estimates on that company. Cuts to earnings estimates can signify that the company may be struggling.
Investors really need to look at each company on a case-by-case basis.
5 Stocks on Sale: Values or Traps?
1. Whirlpool Corp. (WHR - Free Report)
Whirlpool is a home appliance company which manufactures the brands Whirlpool, KitchenAid, JennAir, Maytag, Amana, Brastemp, Consul, and InSinkErator. In business for 115 years, Whirlpool has struggled in the last few years as the housing market has slowed.
Earnings are expected to decline another 59.4% in 2026 after declining in 2025. Analysts do see a turnaround in 2027, with earnings forecast to jump 83%. However, that’s coming off a low level.
In May 2025, Whirlpool cut its quarterly dividend to $0.90 from $1.75 per share. However, the shares have sunk again in 2026, which means even the cut dividend is now yielding 9.8%.
Shares of Whirlpool are down 82.5% to 5-year lows. It trades with a forward price-to-earnings (P/E) ratio of 22. A P/E ratio under 15 is considered to be a value.
Is Whirlpool a value or a trap?
2. Nike, Inc. (NKE - Free Report)
Shares of Nike continue to hit new multi-year lows before its June 30, 2026, fourth quarter earnings report. Shares of Nike are down 73.5% in the last 5 years.
Earnings fell 45.3% in fiscal 2025 and are expected to fall 31% in fiscal 2026. It’s in a turnaround. Nike recently hired a new CFO.
Nike isn’t cheap on a P/E basis yet. It’s trading with a forward P/E of 22.6. A P/E under 15 is considered to be a value.
Nike pays a dividend, which has not been cut, of $1.64. It is yielding 3.8%.
Is Nike a value or a trap?
3. The Wendy’s Co. (WEN - Free Report)
Wendy’s is a well-known American restaurant chain. Shares of Wendy’s recently hit 5-year lows, falling 68.4% in that period. Although, on the date that Tracey recorded this podcast, the shares were up big on news of a new CFO.
Wendy’s has a new management team with a new CEO and CFO. They had previously been together at Potbelly and had grown revenue to $600 million from $338.9 million over a 5-year period. Can they do it again at Wendy’s?
Earnings fell 12% in 2025 and are expected to decline another 35.2% in 2026.
Wendy’s is cheap, with a forward P/E of 13.6. A P/E under 15 is considered a value.
Last year, Wendy’s cut its quarterly dividend to $0.14 from $0.25. It is currently yielding 7.1%, even with the stock rallying this week.
Is Wendy’s a value or a trap?
4. Tractor Supply Co. (TSCO - Free Report)
Tractor Supply is the largest rural retailer in the United States. After a strong showing during the pandemic, Tractor Supply is facing competitive pressures.
This year, shares of Tractor Supply have plunged 38.5% to new 5-year lows. While earnings are expected to rise 4.4% in fiscal 2026, six earnings estimates have also been cut for the year in the last 60 days. The analysts are bearish.
Tractor Supply is cheap, with a forward P/E of 14.2. A P/E under 15 usually indicates value.
It also pays a dividend, which is yielding 3.2%. Tractor Supply has been raising the dividend each year as well. It raised the quarterly dividend $0.01 to $0.24 in Feb 2026.
Is Tractor Supply a value or trap?
5. Adobe Inc. (ADBE - Free Report)
Adobe is a leading software company. On June 11, 2026, it reported its fiscal second quarter 2026 results. Adobe saw record revenue of $6.6 billion, up 13% year-over-year.
Earnings are expected to grow 15.4% in fiscal 2026 after jumping 13.7% in fiscal 2025. After the Q2 earnings report, eleven earnings estimates were raised for fiscal 2026 and none were cut. The analysts are bullish about the rest of this year.
Adobe is cheap. It trades with a forward P/E of 8.1. A P/E under 10 is considered to be deep value.
Shares of Adobe are down 44.7% year-to-date and recently hit new 5-year lows, losing 66.6% during that time.
Is Adobe a value or a trap?
What Else Should You Know About Stocks on Sale?
Tune into this week’s podcast to find out.