UK Markets closed

Zacks Value Investor Highlights: Apple, Amazon, Alphabet, China Life Insurance and Jacobs Engineering

Zacks Equity Research
AB vs. SEIC: Which Stock Is the Better Value Option?

For Immediate Release

Chicago, IL – May 11, 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/303013/lessons-from-warren-buffetts-investing-mistakes

Lessons from Warren Buffett's Investing Mistakes

The meeting is now a big annual event for value investors with multiple days of activities. Mr. Buffett is also doing more interviews than ever before. This time he appeared on CNBC, Yahoo Finance, and a host of other platforms.

While Berkshire revealed it had bought an even bigger position in FANG stock, Apple AAPL, Buffett also lamented the ones that got away: specifically, Amazon AMZN and Alphabet GOOGL.

It brought up an interesting question: can value investors buy non-value stocks?

Should Value Investors Buy Growth Stocks?

At the meeting, Buffett basically admitted that he didn’t buy the other FANG names, other than Apple, for Berkshire because they were too expensive.

He didn’t buy into the rosy growth projections but has been proven wrong.

Obviously, Buffett’s mandate to only buy value stocks has worked for him. But it may not work for every value investor. The rest of us don’t have a “value only” mandate.

Should value investors still buy some growth stocks in their portfolio?

Classic Value Stocks are Still Available

If you want to stick with the classic value stock, you’ll have buying opportunities, but not many of them.

Tracey screened for stocks with low P/Es, P/B ratios, P/S ratios and PEGs along with Zacks Ranks of #1 (Strong Buy) and #2 (Buy).

With this narrow screen, just 13 stocks came through.

Here are 2 that look intriguing.

2 Classic Value Stocks

  1. China Life Insurance (LFC has a forward P/E of just 13.1 and a PEG of 0.5. Charlie Munger talked about investing his personal portfolio in Chinese stocks in an interview on CNBC. He thought they were cheap. There’s just 1 estimate on this company, though, so investors need to do their research.
  2. Jacobs Engineering Group (JEC is merging with CH2M and now has 77,000 employees. In its recent earnings report, it raised full year EPS guidance. It has a forward P/E of just 14.1 and a PEG of 1.

Value investors can also enhance their portfolios by buying value stock ETFs.

But which ones should you be buying?

Find out on this week’s podcast.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

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.

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.