Back to top

Zacks Market Edge Highlights: CF Industries, Mosaic, Etsy, Lululemon and Bausch Health

Read MoreHide Full Article

For Immediate Release

Chicago, IL – November 23, 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/338665/5-top-stocks-that-arent-faang)

5 Top Stocks That Aren't FAANG

Welcome to Episode #155 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, she goes solo to take a look at the recent stock market volatility and what it’s doing to investor portfolios.

Let’s be honest, most investors probably own at least one, if not all, of the FAANG stocks (Facebook, Amazon, Apple, Netflix and Alphabet).

Tracey herself owns Facebook, Amazon and Alphabet.

For the last few years, they’ve been “sure things.” Outside of a few minor pullbacks, they seemed to only go up. Just two months ago, some of them were hitting new all-time highs.

But now, they’ve seen a big sell off which has pushed most of them down over 20%, which is what is considered a bearish signal. The pain, for investors, has been considerable.

Now’s Your Chance to Diversify

Investors can’t change the investment allocation they had going into this sell off, but they can take charge of their own investing destiny moving forward.

Diversity is important. When big cap technology ruled the roost for several years, it didn’t seem to matter, but now it does.

That means most investors should own ETFs and stocks that are outside of technology and social media.

Screening for Solid Fundamentals

How do you find stocks that aren’t FAANG but that also have great fundamentals?

You can combine the Zacks Rank with the Industry Rank, along with some performance metrics, to get companies that have solid fundamentals.

There were 23 stocks that came through the screen.  None were FAANG stocks. All were Zacks Rank #1 (Strong Buy) stocks.

These are the best of the best.

5 Top Stocks That Aren’t FAANG

1.      CF Industries (CF - Free Report) makes fertilizers. This industry has been in a cyclical downturn the last few years but now, both fertilizer prices and demand are rising, which has pushed up earnings estimates. Earnings are expected to jump 64% next year. Shares are down 10% over the last month, but that just means the shares are cheaper.

2.      Mosaic (MOS - Free Report) is another big fertilizer manufacturer. The whole industry is seeing a big boost to earnings forecasts. Earnings are expected to rise 25% next year. Shares are up 5.9% over the last month even as the S&P 500 is down 2.4% during that time.

3.      Etsy (ETSY - Free Report) operates a creative online marketplace. New management has turned around earnings. After making $0.38 in 2017, it is expected to make $0.60 in 2018, a gain of 57%. 2019 is also looking good, with earnings forecast to jump 39%. Shares soared after its recent earnings report but are down nearly 11% in the last 5 sessions. You’re not avoiding all of the volatility by buying this growth company.

4.      Lululemon (LULU - Free Report) is back. The luxury athleisure retailer has been expanding its men’s business and its brand is stronger than ever heading into the holiday season. Earnings are expected to rise 38% in 2018 and another 18% in 2019. Shares are down 14% over the last 5 sessions. Is this a buying opportunity?

5.      Bausch Health (BHC - Free Report) is a pharmaceutical company which is the old Valeant. While earnings are expected to remain flat, the shares are dirt cheap, trading with a forward P/E of just 6. Shares are down 16% in the last 5 sessions, making them as cheap as ever. Over the past month, though, the shares have fallen only 7%.

In big market sell offs, there’s nowhere to hide. But you can limit your risk by adding diversity to your portfolio.

What else should you know about investing outside of FAANG?

Tune into this week’s podcast to find out.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

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.

Follow us on Twitter:  https://twitter.com/zacksresearch

Join us on Facebook:  https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/performance

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.



More from Zacks Press Releases

You May Like