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3 Hot Value Stocks Beating the S&P 500 in 2019

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  • (1:00) - A Look Back At 2019: Index and ETF Performance Overview
  • (11:30) - Tracey’s Top Stock Picks
  • (20:00) - Episode Roundup: VTV, VUG, RPV, RPG, VBR, VBK, AMWD, DHI, JPM

Welcome to Episode #169 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.

2019 was the year of the “great rotation” where, for a brief time, investors sold growth stocks and bought value.

But it didn’t last.

Value stocks, as a group, still underperformed the S&P 500 including both large cap and small cap value.

But looking on the bright side, the large cap value ETFs like the Vanguard Value ETF VTV and the Invesco S&P 500 Pure Value ETF RPV rebounded in 2019.

The Vanguard Value ETF is up 20.2% year-to-date and the Invesco Pure Value ETF has gained 17.7%.

But what if you invested in individual value stocks instead?

Could you get a better return?

3 Hot Value Stocks Breaking Out in 2019

1.       American Woodmark Corp. AMWD saw a big sell-off in 2018 on fears about the housing market and the consumer. This kitchen cabinet maker was cheap. Shares have rallied 80% in 2019 compared to just a 25% gain for the S&P 500. And they’re still cheap, with a forward P/E of just 14.

2.       DR Horton (DHI - Free Report) , along with many of the other home builders, has also been hot this year now that the Fed is cutting rates and mortgage rates have hit new lows. These shares are up 57% year-to-date and yet they’re still cheap with a forward P/E of 11.3.

3.       JPMorgan Chase & Co JPM caught a bid in the second half of 2019. Shares are up 35% year-to-date to new 52-week highs. Yet, this mega-bank is still a value, with a forward P/E of just 13.

What else should you know about what worked, and what didn’t, for value investors in 2019?

Listen to this week’s podcast to find out.

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