How These Boring Stocks Beat Facebook - Value Investor




Zacks Market Edge show

Summary: Welcome to Episode #3 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. This week, Tracey discusses how it’s hard to be a value investor in a world that favors the popular growth names like Facebook (FB). While Facebook’s fundamentals are strong, it is trading with a forward P/E of 39. It’s obviously not a cheap stock. The stock has paid off for investors. Facebook’s shares have soared 286% over the last 5 years. But you didn’t have to be in the high growth names to get great returns over the last few years. There are lots of good quality companies that are just going about their business all over the United States. Many of those have been great investments over the last five years. Look beyond Silicon Valley for investments. You’ll be surprised what is out there. Tracey’s top 4 boring stock picks: 1. Fortune Brands Home & Security (FBHS) (who???) with a 5-year return of 415% 2. Masco (MAS) with a 5-year gain of 383% 3. Newell Brands (NWL) ties Facebook, up 286% over 5 years 4. Snap-On (SNA) jumped 207% during that time period Those returns aren’t too shabby. And they are all trading with P/Es of half that of Facebook. Growth stocks aren’t the only path to investing success. Find out why Tracey loves these unknown boring stocks and more on this week’s podcast. Facebook: https://www.zacks.com/stock/quote/FB?cid=cs-soundcloud-ft-pod Newell Brands: https://www.zacks.com/stock/quote/NWL?cid=cs-soundcloud-ft-pod Snap-On: https://www.zacks.com/stock/quote/SNA?cid=cs-soundcloud-ft-pod Masco: https://www.zacks.com/stock/quote/MAS?cid=cs-soundcloud-ft-pod Fortune Brand H&S: https://www.zacks.com/stock/quote/FBHS?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