For Immediate Release
Chicago, IL – October 29, 2021 – Zacks Value Trader 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:
5 Ten-Year Value Superstars
Welcome to Episode #256 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.
But in Oct 2021, value investors were feeling a bit demoralized after Tesla busted out yet another new all-time high.
Shares have gained over 26,000% in the last ten years, but now trade with a forward P/E of 172.
For most value investors, investing in Tesla is a non-starter. It’s fundamentals don’t match up with the price.
But value investors don’t have to settle for subpar returns either.
Over the last 10 years, there have been value stocks that have outperformed the S&P 500 and even, in some cases, outperformed the NASDAQ 100.
That hasn’t been easy to do, as the S&P 500 has gained 243.7% and the QQQ is up 471.9% in the last decade.
What are these amazing stocks?
5 Ten-Year Value Superstars
1. UnitedHealth Group UNH, the health insurer, was trading at just 10x earnings in 2011 so it was cheap. How much would an investor have made if they had dove into the shares just after the Affordable Care Act passed?
2. Union Pacific UNP, which was founded in 1862, is still relevant all these years later as transportation and logistics remains center stage in the economy. In 2011, UNP traded with a median forward P/E of 15.6. Who knew investing in railroads could be this good?
3. Home Depot HD, the home renovation retailer, was trading with a median forward P/E of 16 in 2011, as the economy was coming out of the Great Recession. How many times have you been to their stores?
4. Ross Stores ROST, the discount retailer, was trading with a forward P/E of 16 in 2011. It’s been a great performer over the last 10 years but have you ever heard it mentioned on Stocktwits or on CNBC?
5. JPMorgan Chase JPM is a surprise on this list. In 2011, it was one of the few big bank survivors of the financial crisis. It traded with a median dirt-cheap forward P/E of just 7.3. How did shares manage to beat the S&P 500 over the last decade?
What else do you need to know about these value superstars?
Tune into this week’s podcast to find out how great their performance was in the last decade.
Zacks Investment Research
800-767-3771 ext. 9339
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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Union Pacific Corporation (UNP) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
To read this article on Zacks.com click here.