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Zacks Market Edge Highlights: Facebook, Apple, Amazon and Alphabet
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For Immediate Release
Chicago, IL – June 7, 2018 – 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/306742/should-you-still-buy-the-fang-stocks)
Should You Still Buy the FANG Stocks?
Welcome to Episode #133 of the Zacks Market Edge Podcast.
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.
In this episode, Tracey is joined by Dave Bartosiak, the Editor of Zacks Momentum Trader newsletter and Zacks Momentum Strategist to discuss, what else, the FANG stocks.
FANG stocks are breaking out to new highs again, including those in FANG 2, which in the BMO Fang Index 3x Leverage ETF (FNGU) means Alibaba, Baidu, NVIDIA, Tesla and Twitter.
Is it too late to get in?
Or is there more upside?
Lots of pundits are wringing their hands about valuation and comparing 2018 to 1999-2000, just before the dot-com bust.
Do the FANG Stocks Have Stretched Valuations?
1. Facebook is trading with a forward P/E of 25.3. This is the cheapest it’s been since its IPO. In that year, in 2012, it had a median forward P/E of 198.
2. Apple (AAPL - Free Report) has been a value stock for years. Just 2 years ago, in 2016, it traded with a forward P/E of just 12. It’s not surprising that that’s when Warren Buffett started to buy. It currently trades with a forward P/E of 16.7, which is its highest in years but is in line with the S&P 500.
3. Amazon (AMZN - Free Report) has never been about a P/E. But Dave points out, that if you look at other valuations, such as the P/S ratio, which is just 4.29, it doesn’t seem overly expensive.
4. Netflix (NFLX - Free Report) has never been “cheap.” Back in 2012, before the Crown, it was trading with a median forward P/E of 2,190. It has a P/E of 125 now. But investors are buying the growth story.
5. Alphabet (GOOGL - Free Report) was cheapest in 2012 when it traded at 17x. Since then, it’s traded in the 20s. Its current forward P/E of 28 is the most expensive the stock has been on a P/E basis in 6 years.
What about FANG 2?
Tesla is the only FANG or FANG 2 stock to be in the red for the year. It’s down about 10%. Dave and Tracey talk about whether it is a buying opportunity or not.
Should you be in Alibaba or Baidu if a trade war breaks out?
And what’s the story with NVIDIA? Does it still have its mojo?
Find out the answer to all of this and more on this week’s podcast.
[In full disclosure, the author of this article owns shares of FB, GOOGL and AMZN in her personal portfolio.]
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.
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/performance for information about the performance numbers displayed in this press release.
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Zacks Market Edge Highlights: Facebook, Apple, Amazon and Alphabet
For Immediate Release
Chicago, IL – June 7, 2018 – 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/306742/should-you-still-buy-the-fang-stocks)
Should You Still Buy the FANG Stocks?
Welcome to Episode #133 of the Zacks Market Edge Podcast.
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.
In this episode, Tracey is joined by Dave Bartosiak, the Editor of Zacks Momentum Trader newsletter and Zacks Momentum Strategist to discuss, what else, the FANG stocks.
FANG stocks are breaking out to new highs again, including those in FANG 2, which in the BMO Fang Index 3x Leverage ETF (FNGU) means Alibaba, Baidu, NVIDIA, Tesla and Twitter.
Is it too late to get in?
Or is there more upside?
Lots of pundits are wringing their hands about valuation and comparing 2018 to 1999-2000, just before the dot-com bust.
Do the FANG Stocks Have Stretched Valuations?
1. Facebook is trading with a forward P/E of 25.3. This is the cheapest it’s been since its IPO. In that year, in 2012, it had a median forward P/E of 198.
2. Apple (AAPL - Free Report) has been a value stock for years. Just 2 years ago, in 2016, it traded with a forward P/E of just 12. It’s not surprising that that’s when Warren Buffett started to buy. It currently trades with a forward P/E of 16.7, which is its highest in years but is in line with the S&P 500.
3. Amazon (AMZN - Free Report) has never been about a P/E. But Dave points out, that if you look at other valuations, such as the P/S ratio, which is just 4.29, it doesn’t seem overly expensive.
4. Netflix (NFLX - Free Report) has never been “cheap.” Back in 2012, before the Crown, it was trading with a median forward P/E of 2,190. It has a P/E of 125 now. But investors are buying the growth story.
5. Alphabet (GOOGL - Free Report) was cheapest in 2012 when it traded at 17x. Since then, it’s traded in the 20s. Its current forward P/E of 28 is the most expensive the stock has been on a P/E basis in 6 years.
What about FANG 2?
Tesla is the only FANG or FANG 2 stock to be in the red for the year. It’s down about 10%. Dave and Tracey talk about whether it is a buying opportunity or not.
Should you be in Alibaba or Baidu if a trade war breaks out?
And what’s the story with NVIDIA? Does it still have its mojo?
Find out the answer to all of this and more on this week’s podcast.
[In full disclosure, the author of this article owns shares of FB, GOOGL and AMZN in her personal portfolio.]
Tracey Ryniec manages the Insider Trader and Value Investor portfolios at Zacks.com. She hosts 2 weekly podcasts: Zacks Market Edge Podcast and the Value Investor Podcast. You can also catch her on Twitter at @TraceyRyniec.
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.
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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/performance for information about the performance numbers displayed in this press release.