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Zacks Value Investor Highlights: Home Depot, Lululemon, Amazon, Tripadvisor and Domino's

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For Immediate Release

Chicago, IL – November 2, 2018 – Zacks Value Investor 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/334234/new-to-stocks-buy-what-you-know)

New to Stocks? Buy What You Know

Welcome to Episode #116 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.

Are you new to investing? Are you unsure what to buy?

Don’t be embarrassed about buying the stocks of the products and restaurants that you love.

Many investors have used the same technique over the years, with the caveat that they’ve also drilled down into the fundamentals of the company to make sure it had a solid performance.

Tracey once met a woman who said she bought Starbucks when it IPO’d in the 1990s because it had opened one of its first coffee shops outside of Seattle in her neighborhood in the Chicago suburbs and she loved it so much she went there all the time.

Her children encouraged her to buy some shares at the IPO, so she did.

The investment ended up paying for family vacations and some college tuition for her children.

The Sell Off is a Buying Opportunity

The recent stock market pullback has presented an opportunity to get some of the high-flying growth stocks at a cheaper valuation. That doesn’t mean they’re “values” in the classic sense, with P/Es under 15.

But they’ve become more attractive as growth stocks because of the sell-off.

Which companies or products do you love that you wish you had bought a while ago? You might want to check them out now.

Buying What You Know

Every investor is different.

If you waited in line in June 2007 to buy this new product called the “iPhone” and you loved it, then possibly Apple stock is for you. But maybe you’re addicted to YouTube videos and would like to own Alphabet?

Trust your instinct.

5 Popular Stocks: Are They Cheaper?

1.      Home Depot (HD - Free Report) is down about 15% over the last month but shares had been soaring previously. Still, it’s brought the forward P/E down to 18 and you get a dividend yielding 2.4%. Tune in for its earnings report on Nov 13.

2.      Lululemon (LULU - Free Report) has rebounded from its see-through yoga pants fiasco with products that are resonating with both men and women. Its brand popularity remains intact. Shares are down 12% in the last month but are still up 78% year-to-date. It’s still a top growth stock.

3.      Amazon (AMZN - Free Report) seemed indestructible until October 2018. Shares fell 20% in the month and suddenly looked vulnerable to further downside. The company formerly had a forward P/E as high as 191 earlier in 2018 but now it’s trading at just 86x. Is this the first buying opportunity in years?

4.      Tripadvisor (TRIP - Free Report) is trying to reinvent itself as it expects to launch a new website by the end of 2018 which will be more social. Can it be a competitor to Twitter or Instagram in the popular travel category? Shares have barely sold off in the pullback and year-to-date are still up 46%. It’s trading with a forward P/E of 60 so investors are really going to have to pay up to get in on this story.

5.      Domino’s (DPZ - Free Report) has been leading the restaurant industry in comparable-store-sales for the last two years. It did it again last quarter with a domestic comp of 6.3%. But no company can keep year-over-year growth at that high level forever. Still, in the pullback, shares have fallen just 10% and are still up 42% year-to-date. Do you dare to jump in?

There are a lot of investing options if you buy what you know.

What other advice should new investors heed if they’re following this investing strategy?

Find out all the answers on this week’s podcast.

[In full disclosure, Tracey owns shares of Amazon in her personal portfolio.]

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it 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.

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