Zacks Market Edge

What if a cheap stock really isn’t as cheap as it seems? Pick a time stamped topic below: (0:40) - Cyclical Stocks: Are they a value trap? (2:35) - Tracey takes an in-depth look at Trinity Industries (6:20) - How to protect yourself as a value investor (8:24) - Where can you find value? (10:50) - Stock ticker re-cap Welcome to Episode #31 of the Value Investor Podcast Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service, shares some of her top value investing tips and stock picks. Recently, she’s been having some Twitter and Stocktwits “discussions” with investors about what makes a cheap stock. Just because a stock has dropped big, even if it’s fallen 50% or more, that doesn’t mean a stock is necessarily “cheap” or a “value.” Certainly, that scenario is one that a value investor would want to investigate further. Tracey has covered value traps on the podcast before but this week she turns to its devious cousin: the cyclical stock. Companies are known as cyclicals when their earnings rise and fall with the mood of the economy. So, for example, a luxury automaker, a motorcycle manufacturer and homebuilders are likely cyclical as their earnings rise when the economy is good and consumers feel bullish enough to buy that new car or new house and their earnings fall when there is a recession. Cyclical stocks can appear to be cheap, especially when earnings are just starting to decline. Trinity Industries Isn’t a Value A good example of this right now are the railcar manufacturers, Trinity Industries (TRN) and Greenbrier (GBX). In 2016, Trinity looked cheap, as it earned $2.25. But earnings are on the decline due to a cyclical drop in rail car orders that will likely last several years. In 2017, the Zacks Consensus is calling for $1.30. With shares near $30, and the slide in earnings, suddenly Trinity went from having a P/E of around 13 to having one around 26. It’s obviously not cheap any longer. How do you avoid the cyclicals? Keep an eye on earnings estimates. What direction are the estimates moving? If they were going up for years but now are on the decline for years, that’s a red flag. The Trinity chart is a perfect illustration of a cyclical. This what you don’t want to be buying- at least not before the bottom of the cycle has been hit. If you’re trying to stay away from these false cheap stocks, what should you be buying right now instead? Look for companies with rising earnings estimates and businesses that won’t be as impacted by an economic slowdown. 3 Value Stocks with Rising Earnings Estimates 1. Western Digital (WDC) has a forward P/E of 14.5. Earnings expected to grow by 38% this fiscal year. 2. Seagate Technology (STXA) has a forward P/E of 10.5. Earnings forecast to rise 99% this fiscal year. 3. First Data Corporation (FDC) has a forward P/E of 12.5. Earnings projected to jump 23% in 2017. What else does Tracey think about the cyclicals and finding cheap stocks while the market is hitting record highs? Tune into this week’s podcast to find out.

With stocks hitting new record highs, you might think there’s nothing left to buy. But some of the biggest money managers beg to differ. Pick a time stamped topic below: (1:30) - Joseph Stilwell: Investing in the small banking community. (6:30) - David Tepper's Holdings: Buying into the pharmaceutical industry. (11:40) - George Soro's Holdings: Starting new positions in energy (14:25) - Kevin and Tracey go in depth: Homebuilders and Retail (21:25) - Tracey's favorite food stock picks: Investing Ideas (26:15) - Stock Ticker Re-cap

Upon a closer look at Buffett’s Berkshire holdings, a value investor may find there are better opportunities out there. Pick a time stamped topic below: (1:00) - What Is Warren Buffett's Current Holdings? (5:05) - Should You Be Buying What Warren Buffett Buys? (9:40) - Tracey's Top Three Picks: Investing Ideas (13:00) - Episode Summary

Welcome to Episode #70 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. In this episode, Tracey is joined by Neena Mishra, Zacks Director of ETF Research and also the editor of Zacks Income Investor. But she’s not on the show this week to talk about ETFs or income stocks. No, she’s joining Tracey to discuss a far more important topic: the investing opportunities in India. Neena just returned from a trip to India where she noticed that there was a lot more optimism about the economy. Prime Minister Modi has been trying to institute economic reforms to open up India’s economy, which has been notoriously closed off to foreign investment. Given the developments over the last few years, it looks like he is succeeding. While many American technology and social media companies are shut out of China for various reasons, India has seemingly opened its doors. With 1.2 billion people, and growing, many companies would love to tap that consumer base. With one of the largest populations of Millennials in the world, and a growing middle class, 2017 could be the year of India. Tracey and Neena discuss 5 ways in which investors can invest in India’s rising economic power, without even leaving the shores of the United States. 5 Stocks to Play the Indian Growth Story 1. Apple (AAPL) only has 2% of India’s smartphone market. Estimated at 300 million, and growing, that’s just a small sliver of the market. But until 2017, it hasn’t been able to open Apple retail stores in the country. Thanks to a deal to manufacture the phones in India, which will bring costs of the phones down for consumers, Apple could soon be tapping India’s growing elite. 2. Tesla (TSLA) appears to be poised to enter the India market after CEO Elon Musk tweeted out in February 2017 that it is looking to enter India in mid-2017. There are also rumors that a long-awaited Tesla Asia manufacturing plant may get the green light in India, instead of China. Stay tuned. 3. Facebook (FB) has long been shut out of the massive Chinese market, but that’s not the case in India. One problem in India, however, has been the poor Internet infrastructure. There are just 250 million data subscribers, although that number is growing quickly. In 2016, Facebook tried to give away the Internet in India but was shot down by the government. However, data companies have been quickly expanding which is helping Facebook’s reach. In the fourth quarter of last year, India was Facebook’s fastest growing market. 4. Amazon (AMZN) has put the most on the line in India as it has already spent about $5 billion to expand its fulfillment centers and delivery service in the country. Amazon Prime has launched in 100 cities. 10% of India’s population speaks English, which makes it the second largest English speaking country, after the United States, in the world. It’s facing competition, however, from Alibaba and homegrown FlipKart and Snapdeal. But it has launched Amazon Video and a recent 3-day Great Indian Sale saw sales growth surge over 200% compared to a regular shopping day. 5. Netflix (NFLX) has an aggressive international expansion plan, and it includes India. In December 2016, just as Amazon Video launched, Netflix announced a partnership with Bollywood movie star and producer, Shah Rukh Khan. Right now, Neena says Netflix is charging around $10 a month for its streaming service. That is high for India. But, again, companies are looking at the growth potential. What else should you know about India and investing in its hot growth story in 2017? Find out the answers to this and more on this week’s podcast.

Value stocks that are hitting a new 52-week high are rare so when you see one, pay attention. Pick a time stamped topic below: (3:15) - Stocks At 52 Week Highs: Value and Momentum (5:07) - Tracey's Top 3 Picks (10:20) - Why Buy Stocks On the High / Stock Ticker Recap

Welcome to Episode #69 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. In this episode, Tracey and Kevin discuss whether healthcare stocks are still the “sure things” they’ve been the last 10 years. Pick a time stamped topic below: (4:10) - Changes In Healthcare: Are Hospitals taking the biggest hit? (7:21) - What's driving the Healthcare Expansion? (8:16) - Kevin Dives Into Biotech: The Future of Medicine (9:30) - *Investing Ideas* (12:20) - Uncertainty for the Insurance Providers (15:10) - *Investing Ideas* (16:30) - Job Growth in Healthcare sector (18:00) - *Investing Ideas* (20:00) - Stock Ticker Summary

Some high-flying stocks have taken a stumble. Tracey digs into whether there is a buying opportunity for value investors. Pick a time stamped topic below: (1:30) - Under Armour misses earnings for the first time in 5 years! (3:15) - Is Starbucks out of favor with investors? Tracey talks restaurants. (5:48) - Apple and William & Sonoma: Are they value stocks? (10:40) - Stock ticker summary Under Armour: https://www.zacks.com/stock/quote/UAA?cid=cs-soundcloud-ft-pod Starbucks: https://www.zacks.com/stock/quote/SBUX?cid=cs-soundcloud-ft-pod Shake Shack: https://www.zacks.com/stock/quote/SHAK?cid=cs-soundcloud-ft-pod Apple: https://www.zacks.com/stock/quote/WSM?cid=cs-soundcloud-ft-pod Williams-Sonoma Inc: https://www.zacks.com/stock/quote/UAA?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch

It’s easy to make a portfolio full of ETFs that includes the broad market, bonds and even the hot niche areas. Pick a time stamped topic below: (2:00) - How to manage ETFs in your portfolio (5:30) - Eric talks high yield ETFs, dividends and getting bond exposure (9:05) - *Investing Ideas* What's the hottest ETF sector in the market? (11:30) - What expense ratio are you paying and should you pay attention to volume? (14:20) - *Investing Ideas* (17:10) - How are the current politics effecting the ETF market? (19:30) - Coming Soon: HOT ETFs (22:50) - Summary of stock tickers

Welcome to Episode #27 of the Value Investor Podcast Every week, Zacks value stock strategist and the Editor of Zacks Value Investor portfolio service, Tracey Ryniec, talks about all things happening in the value stock universe, including her top stock picks. In 2017, she has covered several different ways to find value stocks including using the PEG ratio and the Price-to-Sales ratio. This week, Tracey looks into the price-to-book ratio. The P/B ratio is often one investors overlook. Tracey discusses what the P/B ratio is and why a value investor would want to use it. The lower the ratio the more undervalued a company can be. But investors should be cautious in reading too much into the ratio. It works well with companies that have assets on their books but not as well with companies that have a lot of intellectual property like patents or service companies. Additionally, Tracey discusses why you shouldn’t only use the P/B ratio as your screening tool. It doesn’t give you a complete picture of the value stocks out there. That’s why she screened with P/B and included the Zacks Rank of #1 (Strong Buy) and #2 (Buy). That means the earnings estimates are rising. Even with the inclusion of the Zacks Rank, she still ended up with over 500 stocks. In order to bring more value into the screen, she added a P/E under 15 and it gave her a more manageable list. Looking for a P/B ratio under 3.0 meant that many in her screen were banks. Banks are cheap right now and bank investors like to use P/B, not P/E, as a screen in that industry. If you’re looking for bank stocks that are undervalued, the P/B is one screening method you should definitely keep in your arsenal. What stocks with P/B ratios under 3.0 caught Tracey’s eye? 5 Stocks with Attractive P/B Ratios Bank of America (BAC) has a price-to-book ratio of 0.9. Many of the banks are values, despite their recent run-up. Copa Holdings (CPA), the Panamanian airlines, has a price-to-book ratio of 2.3. Tracey likes the airlines and Copa is one of her favorites in the international space. Goldman Sachs (GS) has a price-to-book ratio of 1.2. Despite its recent stock run, it has a P/E of just 12. It’s cheap. Group 1 Automotive (GPI) has a price-to-book of 1.9. Investors should take a look at the auto retailers. Western Digital (WDC) has a price-to-book of 1.9 and a forward P/E of just 12.7. It’s hard to find a “cheap” tech stock. And it just beat big on earnings. What else does Tracey think about using the price-to-book ratio to find value stocks? Find out on this week’s podcast.

Welcome to Episode #67 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. In this episode, Tracey is joined by Neena Mishra, Editor of Zacks Income Investor, which specializes in dividend paying stocks. One of her favorite industries right now are the financials, specifically the community banks. Ten years ago, banks were the go-to investment for retirees and investors looking for yield. Many of the big banks paid dividends yielding 4% to 5%. But then the Great Recession hit. Banks that survived the chaos ended up cutting their dividends or eliminating them entirely. The once “go-to” industry now was off the investing radar. But that was then and this is now. With the Fed raising rates in December 2016 and expected to possibly raise rates another 3 times in 2017, suddenly the community banks are seeing earnings growth. Some banks have brought back their dividends and others, that never got rid of them, have been raising them. There are over 6,000 banks in the United States. Many of them trade publicly on various exchanges. How do you know which banks to buy? Tracey admits she had never heard of several of Neena’s top choices. That’s the problem with the community banks. A lot of them are still very local. But that doesn’t mean you should pass by this investing opportunity. These Banks Pay Solid Dividends and Have Good Fundamentals PacWest Bancorp (PACW) is a California bank with $21 billion in assets. It pays one of the higher dividends, with a yield of 3.7%. Washington Trust Bancorp (WASH), founded in 1800, is the oldest community bank in the United States. It yields 2.8%. It has raised its dividend in 23 of the last 24 years. That’s an impressive record for any company, let alone a bank which went through the Great Recession. Sandy Spring (SASR) serves the hot DC, Maryland and Northern Virginia market. It has a good record of increasing its dividend with 6 increases over the past 16 quarters. It yields 2.8%. WesBanco (WSBC) dates all the way back to 1870 in West Virginia. It now spans 5 states including Indiana, Kentucky, Ohio, Pennsylvania as well as its home market of West Virginia. It has a $1.8 billion market cap and pays a 2.3% yield. But what if there are simply too many choices? You won’t get that great of a yield, but you can buy the First Trust Community Bank ETF (QABA), which excludes the top 50 US banks so it is filled with many smaller regional and community banks. It is only yielding 1.1% as many of the smaller banks still aren’t able to pay a dividend. Still, Tracey and Neena are both very excited about this industry. Despite the big gain in many banking shares since the November 2016 election, both think there is room to run. Investors have turned their back on the banks for nearly a decade. The Fed rate increases should provide a much-needed boost to earnings. What else should you know about one of the hottest industries of 2017? Tune into this week’s podcast to find out. Pacific West Bancorp: https://www.zacks.com/stock/quote/PACW?cid=cs-soundcloud-ft-pod Washington Trust Bancorp: https://www.zacks.com/stock/quote/WASH?cid=cs-soundcloud-ft-pod Sandy Spring: https://www.zacks.com/stock/quote/SASR?cid=cs-soundcloud-ft-pod WesBanco: https://www.zacks.com/stock/quote/WSBC?cid=cs-soundcloud-ft-pod First Trust NASDAQ ABA Community Bank Index Fund: https://www.zacks.com/funds/etf/QABA/profile?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch

Welcome to Episode #26 of the Value Investor Podcast Every week, Zacks value stock strategist and the Editor of Zacks Value Investor portfolio service, Tracey Ryniec, talks about all things happening in the value stock universe, including her top stock picks. Most value investors use the P/E ratio to search for value stocks but there are other ratios that Tracey thinks you should consider like the price-to-sales ratio (P/S). The P/S ratio is price divided by sales. A ratio of 1.0 means you are paying $1 for every $1 in sales. So value investors should look for a P/S ratio under 1.0. If it’s under 1.0, that means a value investor is paying less for those sales. Why should a value investor care about sales at all? Many like to use the P/S ratio because it’s harder to manipulate than the P/E or other ratios. After all, a sale means that widget has to be sold to a customer or that cheeseburger is purchased. It’s hard to make the sales numbers look better than they are. They are what they are. Tracey ran a screen of Zacks Rank #1 (Strong Buy) and #2 (Buy) stocks along with a P/S ratio under 1.0 and got 169 companies. These are five names that caught her eye. 5 Stocks With P/S Ratios Under 1.0 American Airlines (AAL) has a P/S ratio of 0.6. DSW (DSW) is in the scary retail sector but it’s not apparel. Shoes are always a cheap way to update a wardrobe. It has a P/S ratio of 0.6. Lions Gate Entertainment (LGF.A) just bought out STARZ and now owns the Outlander series. It has a P/S ratio of only 0.8. Parker Drilling (PKD) is in the energy field which most investors have been ignoring. It has a P/S ratio of 0.7. Unitedhealth Group (UNH) just reported earnings and beat the Zacks Consensus again. It has one of the best earnings charts on the Street. It has a P/S ratio of only 0.8. Investors shouldn’t stop with the P/S ratio, however. Dig in deeper to find out what the story is behind these stocks. Do the rest of the fundamentals look as good as the P/S ratio and the Zacks Rank? Find out what else Tracey thinks about the price-to-sales ratio on this week’s podcast. American Airlines: https://www.zacks.com/stock/quote/AAL?cid=cs-soundcloud-ft-pod DSW: https://www.zacks.com/stock/quote/DSW?cid=cs-soundcloud-ft-pod Lions Gate Entertainment: https://www.zacks.com/stock/quote/LGF.A?cid=cs-soundcloud-ft-pod Packer Drilling: https://www.zacks.com/stock/quote/PKD?cid=cs-soundcloud-ft-pod United Health Group: https://www.zacks.com/stock/quote/UNH?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch

Welcome to Episode #66 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. In this episode, Tracey is joined by David Bartosiak, the host of Zacks Live Traderand also the Editor of Zacks Momentum Trader and Home Run Investor. 25 states now allow medical marijuana use and 4 states, plus the District of Columbia, allow recreational use. The market for marijuana and its products is expected to explode to $20 billion a year in the next several years. Of course, investors are wondering: how can I cash in on the pot craze? A few years ago, there were a lot of smaller companies that seemed to be promising like Growlife Inc. (PHOT). But most of those early adopters are now trading on the OTC markets for pennies. Dave and Tracey look at a couple of new ways to play the marijuana trade. 3 Stocks That Are in the Pot Business 1. Innovative Industrial Properties (IIPR) went IPO in late 2016. This REIT buys buildings and leases them to growers of medical marijuana. It’s so new there’s no Zacks Rank and no analyst estimates yet. It has a market cap of just $62 million. 2. GW Pharmaceuticals (GWPH) is everyone’s favorite in these marijuana stock articles. This British-based drug company is developing a cannabis-based drug to treat epilepsy. The good news is that it has passed three Phase 3 trials. The bad news is that it hasn’t yet submitted its NDA. 3. Scotts Miracle Gro (SMG) has spent $500 million in marijuana products and is the furthest along in actually having products to the market. It’s already selling the “Black Magic” potting soil, specifically designed for pot plants, in 141 Home Depots. It also hopes to be first to the market with an acceptable pesticide. But other than these three companies, Tracey and Dave had a hard time in coming up with other stock picks with decent fundamentals. Dave extended his search to Canada where he found Canopy Growth (TWJMF) and Aurora Cannabis (ACBFF) on the pink sheets. Canopy also trades on the Toronto Stock Exchange. But there’s little information in the United States about these companies and they aren’t ranked Zacks.com. What do Tracey and Dave really think about the marijuana stocks? Are they a fad? Or is there a real opportunity there? Tune into this week’s podcast to find out.

Welcome to Episode #25 of the Value Investor Podcast Every week, Zacks value stock strategist and the Editor of Zacks Value Invetor portfolio service, Tracey Ryniec, talks about all things happening in the value stock universe, including her top stock picks. She gets asked all the time about “cheap” stocks, i.e. those under, say, $10 a share. But “cheap” doesn’t mean they’re a “value.” You can have a value stock that has a P/E of 10 trading at $100 a share. Conversely, a $10 stock could have a P/E of 50, which would make it expensive. But what if there were true value stocks that were also cheap? What if you could buy a stock under $20 a share and also get solid value fundamentals like a low P/E and a great Zacks Rank of #1 (Strong Buy), #2 (Buy) or #3 (Hold)? That could be the best of all worlds. Tracey ran some screens with the criteria to see if it was possible. She had problems finding stocks under $10 that fit. But by widening the parameters, she was able to find 5 quality stocks trading under $15 a share with good value fundamentals. 5 Value Stocks Under $15 1. Ryerson Holding (RYI) is a small cap metal processor. It has a forward P/E of 10.4. 2. Huntington Bancshares (HBAN) is the 32nd largest bank in the United States with $74 billion in assets. Earnings are expected to grow 10% in 2017. It has a forward P/E of 13.9. 3. Ecopetrol (EC) is an integrated oil company in Colombia with a $19 billion market cap. It’s all about the price of oil with this one. Earnings are expected to be $0.38 in 2016 and jump to $0.97 in 2017. Its forward P/E is 9.5. 4. CECO Environmental (CECE) is in the air pollution control and filtration markets. It’s a small cap with a market cap of just $490 million. It has a forward P/E of 14.9 and EPS is expected to grow 9.7% in 2017. 5. Fogo de Chao (FOGO) is a Brazilian steakhouse with 44 locations. It sports a forward P/E of 14.9. Earnings are expected to rise 8% in 2017. There’s real variety on this list. It includes small and big caps and some foreign while others are domestic. But remember, it’s easy to screen for these simple criteria like stock price or even P/E but that’s not giving you the full story about the company. It’s just scratching the surface and giving you some investing ideas. Long term investors should remember that they are owners of the company. Do your research. What else does Tracey think about these cheap value stocks? Find out in this week’s podcast. Ryerson Holding: https://www.zacks.com/stock/quote/RYI?cid=cs-soundcloud-ft-pod Huntington Bancshares: https://www.zacks.com/stock/quote/HBAN?cid=cs-soundcloud-ft-pod Ecopetrol: https://www.zacks.com/stock/quote/EC?cid=cs-soundcloud-ft-pod CECO Environmental: https://www.zacks.com/stock/quote/CECE?cid=cs-soundcloud-ft-pod Fogo De Chao: https://www.zacks.com/stock/quote/FOGO?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch

Welcome to Episode #65 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. In this episode, Tracey is joined by Kevin Matras, Vice President at Zacks, Research Wizard guru and the editor of Zacks Option Trader portfolio service. 2016 saw record North American box office at $11.37 billion but profits for the movie studios were down 15%. The tent pole movie strategy worked for Disney (DIS) which had 7 of the top 15 grossing films of the year. According to a profile in Vanity Fair, Disney has as its strategy that it wants to make movies that people must see in the theaters. It wants to make “event” pictures. It’s not surprising, then, that it was the studio behind “Finding Dory” and “Rogue One”. Both had strong word-of-mouth momentum and the public wasn’t willing to wait to see them on cable or television at a later date. But even with its huge studio success, Disney is expected to grow earnings by just 4% this year. Warner Brothers, owned by Time Warner, also had a successful 2016 with big money making movies in “Batman v. Superman”, “Suicide Squad” and “Fantastic Beasts and Where to Find Them”. It has a huge slate for 2017 including “Wonder Woman”, “The Justice League” and “The Lego Batman” movie. The Challenge From the Small Screen But the movie industry is changing again. It now faces more competition than ever from the home viewer who is now able to get original content without getting off the couch. Americans actually go to the movie theater, on average, about 5 to 6 times a year. 1. Netflix (NFLX) spent $100 million producing “The Crown”, a series about the life of Queen Elizabeth, and it appears to have paid off. Analysts have 2017 earnings growth at 142%. It’s trading with a P/E of 133, however. But Kevin says there’s just some stocks where “P/E doesn’t matter.” 2. Amazon (AMZN) is another one that is cashing on original content. Amazon Studios produced award-winning “Manchester By the Sea” in 2016. You also get the cloud and its retail business, though. Amazon is another expensive stock, with a forward P/E of 86. 3. Lionsgate (LGF.A) merged with STARZ last year and now has access to its hit original series about time travel set mostly in Scotland “Outlander” and its 25 million subscriber base. In addition, it’s still making movies through its studio. It produced 2016 awards-favorite “La La Land.” Kevin also likes the combination of Comcast (CMCSA) and Universal Pictures. He likes Comcast’s business focus including its OnDemand segment. Universal will be releasing “A Dog’s Purpose” and “Pitch Perfect 3” this year. Should investors be getting into any of these stocks at this point? And if so, which ones are Tracey’s and Kevin’s favorites? What do they think about the movie business and its future? Amazon: https://www.zacks.com/stock/quote/AMZN?cid=cs-soundcloud-ft-pod Netflix: https://www.zacks.com/stock/quote/NFLX?cid=cs-soundcloud-ft-pod Disney: https://www.zacks.com/stock/quote/DIS?cid=cs-soundcloud-ft-pod Lions Gate: https://www.zacks.com/stock/quote/LGF.A?cid=cs-soundcloud-ft-pod Comcast: https://www.zacks.com/stock/quote/CMCSA?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch

Welcome to Episode #24 of the Value Investor Podcast Every week, Zacks value stock strategist and the Editor of Zacks Value Investor portfolio service, Tracey Ryniec, talks about all things happening in the value stock universe, including her top stock picks. It’s a new year and with that brings new investing opportunities. If you’re not investing, now is the time. Start small and build your portfolio from there. Tracey took a look at one of her favorite value screening criteria, the PEG ratio, to see just how much value is still in this market, which is trading near all-time highs. She looked for the “magic” PEG ratio, which is a PEG under 1.0. That usually indicates a company is undervalued. That gave her too many stocks so she added a Zacks Rank of #1 (Strong Buy) or #2 (Buy) to narrow it down. The Zacks Rank should also provide companies with rising earnings estimates. To her surprise, there were 47 companies that passed the screen. There’s more value and growth combinations than you might think on the stock market right now. Here are her 3 favorites. 3 Value Stocks with Magic PEG Ratios 1. The Chemours Company (CC), a specialty chemical company that was spun off from DuPont. It has a PEG of just 0.68 and is expected to grow earnings by 66% in 2017. 2. Freeport McMoran (FCX) is a copper mining giant which also has a large oil and gas business. The energy and mining companies haven’t shown up in Tracey’s value screens in a while. Even though shares soared 94% in 2016, it’s still cheap with a PEG ratio of just 0.36. It also has soaring earnings estimates for 2017. 3. Whirlpool (WHR), the global appliance maker, has been outperforming in the North American market but has struggled in its number 2 market of Brazil. Still, the shares are cheap with a PEG of just 0.7. Earnings are expected to grow 12.7% in 2017. Tracey believes this could be the year of the value stock. Are you game? Find out more about what Tracey thinks about the PEG ratio in this week’s podcast. Chemours Company: https://www.zacks.com/stock/quote/CC?cid=cs-soundcloud-ft-pod Freeport-McMoran: https://www.zacks.com/stock/quote/FCX?cid=cs-soundcloud-ft-pod Whirlpool: https://www.zacks.com/stock/quote/WHR?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch