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Brian's Big Idea on ETF's

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Roaring Kitty had acquired a stake in Chewy (CHWY - Free Report) and Brian Bolan takes a look at why this isn’t the same thing as GameStop (GME - Free Report) . The biggest idea here is that Chewy (CHWY - Free Report) isn’t really a “deep (EXPLETIVE) value” which happens to be the Reddit handle for Roaring Kitty. Value investors are looking for low price and the way to best measure that is the price to book multiple.

Chewy (CHWY - Free Report) is trading at 17x book value and has limited growth – albeit steady growth. At the end of the day, this investment is far different from the one that provider Roaring Kitty with a lot of fame and while we hope it works out we are not sure that this dog hunts.

For more on Chewy (CHWY - Free Report) be sure to check out the Aggressive Growth Rank Buy on the stock that was published not too long before the stock ran.

Amtech Systems (ASYS - Free Report) is a Zacks Rank #2 (Buy) and this is a micro cap at only $87M in market capitalization. That small market capitalization means that a lot of institutions are note going to be invested in the stock and the low level of liquidity is also a big factor for the stock as the 10 day average volume is only 48K shares.

This stock has a price to book at just about 1x and that is something that value investors love to see.

Finally we look at Clear Secure (YOU - Free Report) which is a Zacks Rank #1 (Strong Buy) that has a D for Value and an A for Growth. This security stock sports a big price to book at 10x but also has shown topline growth of 35% in the most recent quarter.

These are three stocks in three different sectors and it might be difficult for an investor to decide which one they think is best. Sometimes the answer can be to own all three of them and the best way to do that might be through an ETF.

There is an ocean of ETFs available to investors and having the right guidance can be a critical factor in your potential success. Neena Mishra runs the ETF Investor service at Zacks Investment Research and she has compiled a list of excellent ETF's for investors and shows an outstanding track record.

The diversification inside of an ETF can really help your portfolio. Not only would it limit the downside of investing in a specific stock it can also help you in numerous other ways.


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GameStop Corp. (GME) - free report >>

Amtech Systems, Inc. (ASYS) - free report >>

Chewy (CHWY) - free report >>

CLEAR Secure, Inc. (YOU) - free report >>

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