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Welcome to Episode #187 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.
With most companies withdrawing full year 2020 earnings and revenue guidance, it’s becoming difficult to figure out what a “value” stock, which is based on a P/E ratio, is.
What is the “E”, or earnings, going to be?
Investors looking for value stocks might want to consider looking at the large cap companies. They are most likely to survive this pandemic.
On Apr 17, the Wall Street Journal’s Jason Zweig interviewed Berkshire Hathaway’s Charlie Munger about what Berkshire was doing during the crisis.
Munger talked about being the captain of the ship when the worst typhoon ever comes. The captain is just trying to get the ship through the storm.
For value investors, which companies can get through the coronavirus storm?
Looking for Cheap Dow Jones Industrial Stocks
There are 30 components in the Dow Jones Industrial Average. It’s still a highly watched index by many Americans.
For those looking for a list of large caps, it does provide stocks from a variety of sectors.
5 of the companies are trading significantly below the average forward P/E of the S&P 500. And they are paying dividends.
The 5 Cheapest Dow Stocks Right Now
1. Verizon (VZ - Free Report) shares are down just 5.5% year-to-date. 2020 earnings are expected to be flat compared to last year which would be better than what most companies are going to do thanks to the coronavirus impacts. It’s paying a dividend of 4.3%. Is it a deal?
2. Intel Corp. (INTC - Free Report) is among the cheapest, on a P/E basis, of the semiconductors. It has a forward P/E of just 11.6. It, too, is paying a dividend which is yielding 2.3%.
3. Travelers Companies, Inc. (TRV - Free Report) already reported first quarter earnings. Analysts believe full year earnings will rise 5.2% despite the coronavirus impacts. It actually raised its dividend 3.7% and it is now yielding 3.2%.
4. IBM (IBM - Free Report) already reported earnings and trades with a forward P/E of just 9.9. Shares are still down 10.7% year-to-date. Investors get a dividend, currently yielding 5.5%.
5. Walgreens Boots Alliance, Inc. (WBA - Free Report) has plunged 27% year-to-date. It’s already reported, earnings are now expected to fall 7.7% in fiscal 2020. It also pays a dividend, yielding 4.3%. Is it a true bargain?
There are also some Dow stocks that are expensive, but you might be surprised by the most expensive stock, on a P/E basis.
It’s not who you think.
What else should you know about the cheapest Dow stocks?
Listen to this week’s podcast to find out.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
The 5 Cheapest Dow Stocks Right Now
Welcome to Episode #187 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.
With most companies withdrawing full year 2020 earnings and revenue guidance, it’s becoming difficult to figure out what a “value” stock, which is based on a P/E ratio, is.
What is the “E”, or earnings, going to be?
Investors looking for value stocks might want to consider looking at the large cap companies. They are most likely to survive this pandemic.
On Apr 17, the Wall Street Journal’s Jason Zweig interviewed Berkshire Hathaway’s Charlie Munger about what Berkshire was doing during the crisis.
You can read the interview here.
Munger talked about being the captain of the ship when the worst typhoon ever comes. The captain is just trying to get the ship through the storm.
For value investors, which companies can get through the coronavirus storm?
Looking for Cheap Dow Jones Industrial Stocks
There are 30 components in the Dow Jones Industrial Average. It’s still a highly watched index by many Americans.
For those looking for a list of large caps, it does provide stocks from a variety of sectors.
5 of the companies are trading significantly below the average forward P/E of the S&P 500. And they are paying dividends.
The 5 Cheapest Dow Stocks Right Now
1. Verizon (VZ - Free Report) shares are down just 5.5% year-to-date. 2020 earnings are expected to be flat compared to last year which would be better than what most companies are going to do thanks to the coronavirus impacts. It’s paying a dividend of 4.3%. Is it a deal?
2. Intel Corp. (INTC - Free Report) is among the cheapest, on a P/E basis, of the semiconductors. It has a forward P/E of just 11.6. It, too, is paying a dividend which is yielding 2.3%.
3. Travelers Companies, Inc. (TRV - Free Report) already reported first quarter earnings. Analysts believe full year earnings will rise 5.2% despite the coronavirus impacts. It actually raised its dividend 3.7% and it is now yielding 3.2%.
4. IBM (IBM - Free Report) already reported earnings and trades with a forward P/E of just 9.9. Shares are still down 10.7% year-to-date. Investors get a dividend, currently yielding 5.5%.
5. Walgreens Boots Alliance, Inc. (WBA - Free Report) has plunged 27% year-to-date. It’s already reported, earnings are now expected to fall 7.7% in fiscal 2020. It also pays a dividend, yielding 4.3%. Is it a true bargain?
There are also some Dow stocks that are expensive, but you might be surprised by the most expensive stock, on a P/E basis.
It’s not who you think.
What else should you know about the cheapest Dow stocks?
Listen to this week’s podcast to find out.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>