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Zacks Value Investor Highlights: Nike, Deere & Company, Paycom Software, Etsy and Las Vegas Sands
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For Immediate Release
Chicago, IL – July 15, 2024 – 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/2301158/stocks-at-52-week-lows-values-or-traps
Stocks at 52-Week Lows: Values or Traps?
(0:30) - Can You Find Value In Beaten Down Stock Hitting New Lows?
(5:30) - Tracey’s Top Stock Picks For Your Watchlist
(29:00) - Episode Roundup: NKE, DE, PAYC, ETSY, LVS
Welcome to Episode #374 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.
While many stocks are hitting new 52-week highs, there are always some that are going the other way, and are hitting new 52-week lows.
You can screen for stocks trading at their 52-week lows on the Zacks.com basic screener. Tracey ran that screen, without any other metrics. She didn’t even include the Zacks Rank.
It returned 450 stocks trading AT the lows.
That’s a lot of stocks. And a dozen popular, well-known companies were among them.
Are there any deals among these stocks? Or are they traps?
What is the Difference Between a Value Stock and a Trap?
Remember, a value stock is defined not by the price of the stock but by its valuation. They usually have low P/E and P/S ratios, among other criteria. But lots of stocks can qualify by that metric.
A cheap stock becomes a trap when the earnings are expected to decline. Value investors want cheap stocks where earnings are still expected to grow. In fact, all investors should want stocks with rising earnings.
But it’s a rare combination to get a stock near 52-week lows AND it still has earnings growth.
Nike shares have collapsed to multi-year lows as business remains slow following the pandemic. Nike hit a 52-week low, but is also now down 17.6% over the last 5 years. That is well below the S&P 500 which is up 86% during that same period.
Even after the stock plunge, Nike isn’t that cheap. It trades with a forward P/E of 23 and a P/S ratio of 2.2. Neither one of those is a “value.”
Deere has been trading in a narrow trading range for the last three years but it recently touched its 52-week low. Deere shares are down 8.5% year-to-date but over the last 5 years, are up 121%.
Deere actually has value characteristics with a forward P/E of just 13.9. It also pays a dividend, yielding 1.7%.
Paycom Software is a cloud-based HR and payroll software provider. Software stocks have been out of favor and that is true with Paycom. Shares are down 27.8% year-to-date and are also at 5-year lows, down 38.7% during that time.
However, Paycom has no debt and pays a dividend, currently yielding 1.1%. It’s also a rare Zacks Rank #1 (Strong Buy) which is also trading at its 52-week lows. There is a disconnect with the Street.
Etsy was a big winner during the pandemic as people bought homemade masks and other items for living, and working, at home. But shares of Etsy have given up their pandemic rally. It is now down 6.6% over the last 5 years, while the S&P 500 is up 86% during that same time.
Etsy isn’t cheap. It has a PEG ratio of 4.5. Etsy also doesn’t pay a dividend.
Las Vegas Sands owns resorts in the United States and Asia. Shares were at new 52-week lows in July 2024, down 13% year-to-date. Over the last 5-years, Las Vegas Sands has also lagged, falling 33.4%.
Las Vegas Sands is cheap with a PEG ratio of 0.7. It also pays a dividend, which helps if you’re being patient, currently yielding 1.9%.
Is Las Vegas Sands a value or a trap?
What Else Should You Know About Stocks at 52-Week Lows?
Tune into this week’s podcast to find out.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
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.
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.
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.
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Zacks Value Investor Highlights: Nike, Deere & Company, Paycom Software, Etsy and Las Vegas Sands
For Immediate Release
Chicago, IL – July 15, 2024 – 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/2301158/stocks-at-52-week-lows-values-or-traps
Stocks at 52-Week Lows: Values or Traps?
Welcome to Episode #374 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.
While many stocks are hitting new 52-week highs, there are always some that are going the other way, and are hitting new 52-week lows.
You can screen for stocks trading at their 52-week lows on the Zacks.com basic screener. Tracey ran that screen, without any other metrics. She didn’t even include the Zacks Rank.
It returned 450 stocks trading AT the lows.
That’s a lot of stocks. And a dozen popular, well-known companies were among them.
Are there any deals among these stocks? Or are they traps?
What is the Difference Between a Value Stock and a Trap?
Remember, a value stock is defined not by the price of the stock but by its valuation. They usually have low P/E and P/S ratios, among other criteria. But lots of stocks can qualify by that metric.
A cheap stock becomes a trap when the earnings are expected to decline. Value investors want cheap stocks where earnings are still expected to grow. In fact, all investors should want stocks with rising earnings.
But it’s a rare combination to get a stock near 52-week lows AND it still has earnings growth.
5 Stocks at Their 52-Week Lows: Values or Traps?
1. Nike, Inc. (NKE - Free Report)
Nike shares have collapsed to multi-year lows as business remains slow following the pandemic. Nike hit a 52-week low, but is also now down 17.6% over the last 5 years. That is well below the S&P 500 which is up 86% during that same period.
Even after the stock plunge, Nike isn’t that cheap. It trades with a forward P/E of 23 and a P/S ratio of 2.2. Neither one of those is a “value.”
Should value investors be patient on Nike?
2. Deere & Company (DE - Free Report)
Deere has been trading in a narrow trading range for the last three years but it recently touched its 52-week low. Deere shares are down 8.5% year-to-date but over the last 5 years, are up 121%.
Deere actually has value characteristics with a forward P/E of just 13.9. It also pays a dividend, yielding 1.7%.
Is Deere a value or a trap?
3. Paycom Software, Inc. (PAYC - Free Report)
Paycom Software is a cloud-based HR and payroll software provider. Software stocks have been out of favor and that is true with Paycom. Shares are down 27.8% year-to-date and are also at 5-year lows, down 38.7% during that time.
However, Paycom has no debt and pays a dividend, currently yielding 1.1%. It’s also a rare Zacks Rank #1 (Strong Buy) which is also trading at its 52-week lows. There is a disconnect with the Street.
Is Paycom Software a value or a trap?
4. Etsy, Inc. (ETSY - Free Report)
Etsy was a big winner during the pandemic as people bought homemade masks and other items for living, and working, at home. But shares of Etsy have given up their pandemic rally. It is now down 6.6% over the last 5 years, while the S&P 500 is up 86% during that same time.
Etsy isn’t cheap. It has a PEG ratio of 4.5. Etsy also doesn’t pay a dividend.
Is Etsy a value or a trap even at the lows?
5. Las Vegas Sands Corp. (LVS - Free Report)
Las Vegas Sands owns resorts in the United States and Asia. Shares were at new 52-week lows in July 2024, down 13% year-to-date. Over the last 5-years, Las Vegas Sands has also lagged, falling 33.4%.
Las Vegas Sands is cheap with a PEG ratio of 0.7. It also pays a dividend, which helps if you’re being patient, currently yielding 1.9%.
Is Las Vegas Sands a value or a trap?
What Else Should You Know About Stocks at 52-Week Lows?
Tune into this week’s podcast to find out.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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.
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
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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.