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Value Investors: Are Stocks Cheap or Not?

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  • (0:30) - Where Should You Be Looking To Find True Value Stocks?
  • (4:40) - Tracey's Top Stock Picks For Your Portfolio
  • (30:00) - Episode Roundup: HLT, BKNG, AMN, GAP, RCL
  • Podcast@Zacks.com

 

Welcome to Episode #402 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.

With the market selling off on the tariff turbulence, some stocks look like deals. We’ve already discussed some of the energy stocks, which appear to be dirt cheap, but what about other stocks that have seen weakness?

Tracey looked at 5 stocks. Some have sold off big, others have surprisingly held up. 3 are in the travel industry. One is a retailer. And the other is in healthcare staffing.

Wall Street is in the middle of first quarter earnings season. These companies will have conference calls and give new guidance that may, or may not, reflect the tariff impacts.

What are the analysts doing, if anything, with earnings revisions?

5 Stocks to Watch: Cheap or Not?

1. Hilton Worldwide Holdings, Inc. (HLT - Free Report)

Hilton Worldwide Holdings is a global hospitality company with 24 brands. Shares of Hilton have taken a dive in 2025, falling 14.8%.

Hilton Worldwide is cheaper than it was in 2024, with a forward price-to-earnings (P/E) ratio now at 26.5. Earnings are still expected to rise 11.1% in 2025.

But what if there is a recession in the United States, or globally, in 2025? Hilton will report earnings on Apr 29, 2025 so investors should get some insight then.

Is Hilton a deal right now, or is this a trap?

2. Booking Holdings Inc. (BKNG - Free Report)

Booking Holdings is the global leader in online travel and it includes brands such as Priceline. Shares of Booking are down 8% year-to-date but over the last month, during the tariff turbulence, shares are up 0.2%.

Booking has always traded at a premium to the market. It has a forward P/E of 22. Earnings are expected to rise 10.6% in 2025.

We’ll find out if demand is being hit for summer and fall travel on Apr 29, 2025, when it reports earnings.

Should Booking be on your watch list for a buying opportunity?

3. AMN Healthcare Services, Inc. (AMN - Free Report)

AMN Healthcare Services is a healthcare staffing company, including travel nurses. Shares of AMN Healthcare hit a 5-year low this year and are down 22.7% year-to-date.

Surprisingly, AMN Healthcare is not that “cheap” on a P/E basis. It has a forward P/E of 20. That’s because, while the shares have sold off, the earnings are expected to decline by 71% this year after falling 59.7% last year.

AMN Healthcare seems like a deal, but it is a Zacks Rank #5 (Strong Sell).

Should you keep AMN Healthcare on your watch list for the staffing recovery?

4. The Gap, Inc. (GAP - Free Report)

The Gap is a global apparel and accessory company with several brands including the Gap, Banana Republic, Athleta and Old Navy. Shares of the Gap are down 19% year-to-date on tariff and recession fears.

The Gap is dirt cheap. It trades with a forward P/E of just 7.7. Any P/E under 10 is considered-to-be “dirt cheap.”

Should an apparel retailer like The Gap be on your short list or is it too risky?

5. Royal Caribbean Cruises Ltd. (RCL - Free Report)

Royal Caribbean is a vacation industry leader with 67 ships across 5 brands visiting all 7 continents. Shares of Royal Caribbean are down 16.5% year-to-date.

Royal Caribbean is cheap by basic value fundamentals. It has a forward P/E of just 12.9. A P/E under 15 is usually considered “value.” Royal Caribbean also has a PEG ratio of 0.66. A PEG under 1.0 indicates a company has both value and growth.

Earnings are expected to rise 25.7% in 2025 but it will report first quarter results on Apr 29, 2025 so the Street will get insights then.

Can Royal Caribbean keep its earnings growth even if there’s a recession?

What Else Do You Need to Know About Cheap Stocks?   

Tune into this week’s podcast to find out.

[In full disclosure, Tracey owns shares of Booking in her personal portfolio.]

 

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