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Zacks Market Edge Highlights: Facebook, Amazon, Apple, Netflix and Alphabet
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For Immediate Release
Chicago, IL – August 29, 2019 – Zacks Market Edge is a podcast hosted weekly by cks 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:
Are the FAANG Stocks on Sale?
Welcome to Episode #191 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.
This week she went solo to take a look at the market volatility and whether or not the FAANG stocks are on sale.
The FAANGs soared in 2017 and took a dive in late 2018, along with the rest of the market.
But most of them bounced back in the first six months of the year, along with the rest of the stock market, only to see some weakness in the summer of 2019.
Should you be buying?
Are the FAANGs Cheap?
1. Facebook is trading with a median P/E of 22.6 in 2019 which is the lowest median for the company since its 2012 IPO. In 2012, it traded with a forward median P/E of 198x. Its current P/E is 28.2 as shares have sunk 7% in the last month. Is Facebook finally on sale?
2. Amazon (AMZN - Free Report) has a forward P/E of 73 which sounds expensive but it’s the lowest since the 2009-2010 period. That was before AWS burst on the scene. Shares are down 8.1% in the last month and 8.9% over the last year. That’s underperforming the S&P 500 which is down about 1% during that same period. Is now the time to buy?
3. Apple (AAPL - Free Report) has long been known as the “value” stock of the FAANG. Heck, even Warren Buffett bought shares in 2016 when it was trading with a median P/E of 12. Now, the forward P/E is 17.7. That’s hard dirt cheap even though investors get a dividend, yielding 1.5%. Shares have fallen 6% over the last year. Are they cheap enough for value investors to jump in?
4. Netflix (NFLX - Free Report) has the highest P/E of the FAANGs, with a forward P/E of 90. However, it used to be triple digits but the shares have fallen 13% over the last month which has brought the P/E down. This 90 P/E is also the lowest P/E for the company since 2010-2011 when the median P/E was in the 40s. Is this a buying opportunity?
5. Alphabet (GOOGL - Free Report) shares are down 6.9% in the last year while the S&P 500 has fallen only about 1%. It has a median P/E this year of 23.5, which is the lowest median P/E in 6 years. However, in 2012, it traded as low as 17.2x. Sales are still expected to jump 20.2% in 2019, continuing its streak of 20% revenue growth. But do shares have to go lower for it to be a true bargain?
What else should you know about the FAANG stocks in 2019?
Find out on this week’s podcast.
[In full disclosure, the author of this article owns shares of FB, AMZN and GOOGL in her own personal portfolio.]
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
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, Amazon, Apple, Netflix and Alphabet
For Immediate Release
Chicago, IL – August 29, 2019 – Zacks Market Edge is a podcast hosted weekly by cks 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:
Are the FAANG Stocks on Sale?
Welcome to Episode #191 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.
This week she went solo to take a look at the market volatility and whether or not the FAANG stocks are on sale.
The FAANGs soared in 2017 and took a dive in late 2018, along with the rest of the market.
But most of them bounced back in the first six months of the year, along with the rest of the stock market, only to see some weakness in the summer of 2019.
Should you be buying?
Are the FAANGs Cheap?
1. Facebook is trading with a median P/E of 22.6 in 2019 which is the lowest median for the company since its 2012 IPO. In 2012, it traded with a forward median P/E of 198x. Its current P/E is 28.2 as shares have sunk 7% in the last month. Is Facebook finally on sale?
2. Amazon (AMZN - Free Report) has a forward P/E of 73 which sounds expensive but it’s the lowest since the 2009-2010 period. That was before AWS burst on the scene. Shares are down 8.1% in the last month and 8.9% over the last year. That’s underperforming the S&P 500 which is down about 1% during that same period. Is now the time to buy?
3. Apple (AAPL - Free Report) has long been known as the “value” stock of the FAANG. Heck, even Warren Buffett bought shares in 2016 when it was trading with a median P/E of 12. Now, the forward P/E is 17.7. That’s hard dirt cheap even though investors get a dividend, yielding 1.5%. Shares have fallen 6% over the last year. Are they cheap enough for value investors to jump in?
4. Netflix (NFLX - Free Report) has the highest P/E of the FAANGs, with a forward P/E of 90. However, it used to be triple digits but the shares have fallen 13% over the last month which has brought the P/E down. This 90 P/E is also the lowest P/E for the company since 2010-2011 when the median P/E was in the 40s. Is this a buying opportunity?
5. Alphabet (GOOGL - Free Report) shares are down 6.9% in the last year while the S&P 500 has fallen only about 1%. It has a median P/E this year of 23.5, which is the lowest median P/E in 6 years. However, in 2012, it traded as low as 17.2x. Sales are still expected to jump 20.2% in 2019, continuing its streak of 20% revenue growth. But do shares have to go lower for it to be a true bargain?
What else should you know about the FAANG stocks in 2019?
Find out on this week’s podcast.
[In full disclosure, the author of this article owns shares of FB, AMZN and GOOGL in her own personal portfolio.]
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>
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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.