Zacks Market Edge

Welcome to Episode #64 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 Zacks Director of Research, Sheraz Mian. He is also the mastermind behind Zacks Top 10 Stocks to Buy in 2017. This is a buy and hold portfolio of 10 stocks that are purchased in the first week of the new year and held until the end of the year. Sheraz has picked this portfolio for several years so every December he has to narrow down the Zacks universe of covered stocks, which is about 4400 different stocks, into the 10 he feels will perform the best in the following year. It’s not easy. How Sheraz Picks Stocks for the Portfolio He starts with developing his macro view of the economy and what he thinks might happen in the United States and the global economy in a host of areas including with the Federal Reserve, with healthcare policy, with possible trade disputes under the Trump Administration, as well as with the French and German elections still to come later in the year. Once you have developed your strategy for the year, then, he says, the stock picks become clearer. Sheraz picks from Zacks Rank #1 (Strong Buy), #2 (Buy) and #3 (Hold) stocks. He also uses the Zacks Industry and Sector ranks to narrow things further. Zacks.com has a bunch of information you can use to find good quality names, including the analyst estimate data. They wouldn’t say what is in this year’s portfolio, but Tracey and Sheraz were able to analyze what went right and what went wrong in the 2016 portfolio. Sheraz discusses how he picked last year’s portfolio and which of the stocks he still likes in 2017. The Good and Bad of 2016 Sheraz took a risk on energy but it paid off big as Pioneer Natural Resources (PXD) was his biggest winner last year with a 45.8% gain. He didn’t shy away from the banks in 2016. First Republic (FRC) which specializes in high net worth individuals in San Francisco rose 44%. Dave & Buster’s (PLAY) was the smallest company in last year’s portfolio with a $1.7 billion market cap. Listen to the podcast to find out why he picked it last year and what he thinks going forward. EPAM Systems (EPAM) never got momentum. This global IT company fell 13.8%. Manhattan Associates (MANH) was the worst performer in 2016, losing 17.6%. They make software that helps online retailers and sellers. Does Sheraz still like them for 2017? Some of the trends of 2016 will continue into 2017. Which ones? What does Sheraz think of the banking stocks in 2017 after the big run in 2016? Yes, there is a bank in the 2017 portfolio. Also, he’s a former oil analyst, so he’s not hiding from the energy stocks in 2017. But you might be surprised at his pick this year. What other tips does Sheraz have about how to pick stocks? Tune into this week’s podcast to find out. Pioneer Natural Resources: https://www.zacks.com/stock/quote/PXD?cid=cs-soundcloud-ft-pod Dave and Busters: https://www.zacks.com/stock/quote/PLAY?cid=cs-soundcloud-ft-pod First Republic Bank: https://www.zacks.com/stock/quote/FRC?cid=cs-soundcloud-ft-pod EPAM Systems: https://www.zacks.com/stock/quote/EPAM?cid=cs-soundcloud-ft-pod Manhattan Associates: https://www.zacks.com/stock/quote/MANH?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 #23 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. The end of the year is time for reflection and in 2016, there was a lot of reflection an investor could do. While everything is ending rosy with the indexes hitting new all time highs, the year began with a stock market sell off that was so severe, the first 10 days of January were the worst for the stock market in 100 years. Sheer terror gripped stock investors to start the year. January saw the Dow Industrials finish down 5.5% and the NASDAQ fell 8%. The selling continued into February as crude dropped to new multi-year lows of $25 and there were calls that it would go as low as $10. The small cap stocks were smoked, falling more than 15% in this time period. It was the end of the world. Or so it seemed. Did you buy when everyone was selling? Or did you move to the sidelines, too scared to jump in? The Biggest Lesson of 2016 It’s hard to be a value investor. When times get rough, that’s when we should get in but fear keeps many of us on the sidelines. Stocks are the one thing that when they go on sale, Americans don’t buy them. Instead, they do the opposite. Most investors can’t turn off their emotions and that’s okay. But the lesson of 2016 is that we can learn to control our emotions so that when we see buying opportunities, we’re able to get in the game. Because while stocks are hitting record highs right now and everything is blissful, at some point in 2017 we’re going to get a stock market pull back. No one knows when it will be or how big it will be. But that will be another buying opportunity. If you learn to concur your fear of not buying on pullbacks, then you’ll be ready to take advantage. Still Value Stocks Out There While we’re waiting for a sell off to bring down valuations, the value investor can still be buying stocks. I’ve covered many stocks over the last month that were cheap and I’m giving you another set of them now as we head into the new year. This is a collection of names from different industries but they all have forward P/Es under 15 and price-to-sales ratios under 1.0. I also looked for rising earnings estimates which hopefully will translate into earnings growth in 2017 and beyond. Skywest (SKYW) is a regional airline, operating for United, Alaska, American and Deltas, with a forward P/E of 14.4. Weight Watchers (WTW) is back in the news after Oprah said she lost 40 pounds on the program. January is the big time of the year for the weight loss and fitness industry. I’m making New Year’s Resolutions, are you? It trades with a forward P/E of just 12.6. Lear Corporation (LEA) makes seating and electrical systems for cars and light trucks. It is cheap with a forward P/E of just 9.8. Beazer Homes (BZH) is one of the largest home builders in the US. I keep highlighting the home builders because the entire industry is a value as its out of favor with investors. It has a price-to-sales ratio of only 0.3. Aerocentury (ACY) leases aircraft to regional airlines. This is a microcap though, with a market cap of just $14 million. Yikes! Be careful. But I include it because analysts are covering it and it’s dirt cheap, with a forward P/E of 6.5. We all make mistakes in investing. The new year gives us an opportunity to learn from what happened the prior year and to, hopefully, do things differently going forward. Remember what happened to start the year and learn from it. Find out more about what Tracey thinks about conquering your fear of stock sell offs in this week’s podcast. Happy New Year!

Welcome to Episode #63 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 Maddy Johnson, host of the Friday Finish Line podcast and a Zacks writer, to talk about who is dominating the online retail space. Amazon was supposed to be the doom of all the retailers. But surprise! Most of them are still here and they’re now competing against Amazon in the online space. Over the last Cyber Weekend, while Amazon (AMZN) still saw the most online orders, Best Buy (BBY) was a surprising second. Remember when Best Buy was just going to be a “showroom” for Amazon? Have they turned the game around? Maddy and Tracey also discuss why Amazon hasn’t been able to put a dent in online sales of companies like Ulta (ULTA). (Psst, they have a secret weapon that Amazon doesn’t have.) But there are other retailers able to capture market share online and some still competing the old fashioned way. Online Game Changers 1. The home and furniture retailers like Home Goods which is owned by TJX Corporation (TJX), the parent of TJ Maxx and Marshalls. Additionally Tuesday Morning (TUES) is managing to compete in the home goods category with NO online selling presence at all. You must go to a store to purchase. Are they crazy? 2. Not usually thought of as part of retail, but the online travel companies sell that dream vacation. Very few people are going to a physical travel agent anymore to buy their trips. Expedia, Priceline and even Tripadvisor are all changing the way travel is bought. Has online shopping peaked yet? What else should you know about the online retails leaders? Tune into this week’s podcast to find out. Amazon: https://www.zacks.com/stock/quote/AMZN?cid=cs-soundcloud-ft-pod Best Buy: https://www.zacks.com/stock/quote/BBY?cid=cs-soundcloud-ft-pod TJ Max; https://www.zacks.com/stock/quote/TJX?cid=cs-soundcloud-ft-pod Tuesday Morning: https://www.zacks.com/stock/quote/TUES?cid=cs-soundcloud-ft-pod Ulta Salon: https://www.zacks.com/stock/quote/ULTA?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 #22 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. 2016 is winding down so that means looking forward to next year’s investing strategies. With US stock indexes still trading at new record highs, that leaves value investors wondering: where will the value stocks be in 2017? By its very definition, being a value stock means that that stock is out of favor with investors and Wall Street. It might not be in a favored industry or maybe it is having management issues. Sometimes, value investors find themselves looking at companies that are in industries or sectors that everyone hates. Who wants to invest in the extreme out-of-favor areas? It may even result in having to hold the nose and dive in. 2017 could be one of those years. But that is the nature of value investing. It can mean getting into areas that seem unappetizing, or even boring, at least at first. After all, if I told you a year ago that the community banks would be a red hot investment at the end of 2016, would you have believed me? 3 Hated Areas to Find Value Stocks in 2017 1. International stocks have underperformed since 2008. Because of that under performance, the Mom and Pop investor hates them. But this is the very time when you should be looking at them. You can buy a basket of small cap stocks through the Vanguard All-World ex-US small cap ETF (VSS). It has forward P/E of 14.4. It also has an attractive price-to-sales ratio of 0.8 and a price-to-book ratio of just 1.3. You get some reward with a dividend yielding 2.7%. Or, if you want to play individual international companies, check out Brazilian regional jet maker Embraer Air (ERJ). It is trading with a forward P/E of 13. 2. The Homebuilders. They were the best performing sector in 2012 and since then, they’ve done nothing. With mortgage rates rising, this also seems like a risky play. But some of them are cheap. The industry is worth a look. Toll Brothers (TOL) targets the more affluent buyers, who should be helped by Trump tax breaks. It is also starting a brand to target affluent Millennials. Shares are cheap, with a forward P/E of only 10. 3. Everyone says the mall is dead, so why would you want to buy the mall retailers? JC Penney (JCP) has been trying to turn it around for a few years, but earnings haven’t caught up yet. It’s not cheap, with a forward P/E of 186. A better option would be a hybrid mall and strip mall player like Kohl’s (KSS). It is expected to grow earnings by 7% next year but shares are still cheap, with a forward P/E of 13.2. Be careful of value traps in this area. Value investors are known for their ability to look outside the box for stock ideas. You might not always like the options, but don’t dismiss a stock solely because it’s in a sector or industry that you cringe at. Find out more about where Tracey is looking for value stocks in 2017 on this week’s podcast. Happy New Year! VANGUARD FTSE ALL-WORLD EX-US SMALL-CAP: https://www.zacks.com/funds/etf/VSS/profile?cid=cs-soundcloud-ft-pod Embraer Air: https://www.zacks.com/stock/quote/ERJ?cid=cs-soundcloud-ft-pod Toll Brothers: https://www.zacks.com/stock/quote/TOL?cid=cs-soundcloud-ft-pod Khols Corp: https://www.zacks.com/stock/quote/ERJ?cid=cs-soundcloud-ft-pod JC Penney: https://www.zacks.com/stock/quote/JCP?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 #62 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 John Blank, Zacks Chief Equity Strategist and the Editor of Zacks Large Cap Trader. John is also an economist, so who better to ask about what could go right, and what could also go wrong, with the US economy in 2017? Tracey and John discuss: 1. The spiking 10-year treasury. Will yields slow the economy in 2017? John describes the 2017 economy as 2014 redux. Remember, back in 2014, rates also spiked to nearly 3%. But John believes “this time is different.” Find out why. 2. Could the US go into a recession in 2017? John describes what really makes a recession. It’s not what you think. And he and Tracey debate whether or not the conditions could be favorable for one in 2017. Their Favorite Stocks for 2017 Despite the surge in the small cap indexes to end 2016, Tracey and John are fans of mid and large cap stocks for 2017. 1. Seagate (STX) is one of John’s picks. It is both cheap and pays a fantastic dividend yielding 6.2%. 2. Western Digital (WDC) is a favorite of John’s. It trades with a forward P/E of only 12.5 and also pays a juicy dividend yielding 3.5%. 3. Tracey still likes the energy stocks like BP (BP). It has been entering into deals and pays a dividend of 6.5%. 4. Semiconductors are another favorite area for Tracey. Cree Inc. (CREE) just raised its full year guidance. Nvdia (NVDA) also remains one of the hottest stocks in the S&P 500. What other surprises should you prepare for in the US economy in 2017? Tune into this week’s podcast to find out. Seagate: https://www.zacks.com/stock/quote/STX?cid=cs-soundcloud-ft-pod Western Digital: https://www.zacks.com/stock/quote/WDC?cid=cs-soundcloud-ft-pod Cree Inc: https://www.zacks.com/stock/quote/CREE?cid=cs-soundcloud-ft-pod BP: https://www.zacks.com/stock/quote/BP?cid=cs-soundcloud-ft-pod Nvidia: https://www.zacks.com/stock/quote/NVDA?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 #21 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. Recently, she read an interesting article by John Huber, a portfolio manager at Saber Capital Management, which focuses on value investing, called: What is Your Edge. It listed 3 ways investors can gain an advantage in stock investing. They are: 1. Informational Advantage 2. Analytical Advantage 3. Time-horizon Advantage He believes that most investors only focus on the first advantage, information advantage, to their detriment. In the Internet age, where nearly everyone has access to information and data on companies, it’s nearly impossible to actually come up with “new” information that other investors don’t yet have. There are few unknowns. Because of that, getting an advantage based on information is almost impossible to do. But the #3 advantage, the time-horizon, is often overlooked by investors. Most investors have no patience. Are you willing to hold for several quarters, as long as the fundamentals remain solid, even if the stock isn’t doing much? Not many are. This is where value investors who have patience get their advantage. 3 Stocks Where Patience Is a Virtue 1. Aetna (AET) traded in a narrow range for 16 months before finally moving higher after the election. It has a forward P/E of 15.9. 2. AMN Healthcare (AMN), the medical staffing company, hasn’t gone anywhere even though it has beat on earnings and is expected to grow EPS by 44% this year. It has a forward P/E of 16.5. 3. Disney (DIS) was on a tear for several years but has traded between $90 and $105 for most of the last year. It has a forward P/E of 17.5. Do you have the guts to stick it out with a company when the fundamentals still look solid? Professional managers usually can’t have patience. They have to produce a certain performance quarter after quarter, even if it involves “window dressing” where they buy certain positions just to make the portfolio look good. But you don’t have these restrictions. You can have patience and hold for a longer time period. There are no end-of-the-quarter numbers to publish. The only person you have to impress is yourself. There are so many traders, and computers, which are trading stocks that it is nearly impossible to get an advantage over them. But you don’t need to. Your advantage is if you actually don’t trade. You gain the edge by having a different time-horizon. Time is your friend. Find out more of Tracey’s advice about the advantage of time on this week’s podcast. Aetna: https://www.zacks.com/stock/quote/AET?cid=cs-soundcloud-ft-pod AMN Healthcare Services: https://www.zacks.com/stock/quote/AMN?cid=cs-soundcloud-ft-pod Disney: https://www.zacks.com/stock/quote/DIS?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 #62 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 Jeremy Mullin, the Editor of Zacks Counterstrike portfolio service, to chat about the strength of the Trump Rally, what they see happening in 2017, what to make of gold and oil in the new year and, of course, the all-important question of: what stocks should you be buying in 2017? Tracey and Jeremy are both bullish as the strength of this rally has surprised Wall Street and most investors. Neither one feels like it’s too late to get in, but, there are always pullbacks in every bull market so investors may want to wait and buy on weakness. What About Gold? Gold (GLD) had a blistering rally in the first half of the year, but it has gone the other way since then. It has also taken the gold mining stocks with it. Gold is a fear trade but it can also be an inflation trade. Do Tracey or Jeremy think that inflation could be on the horizon? In a true bull stock market, gold isn’t the place you’d want to be. Find out what Tracey and Jeremy think about gold in 2017. Oil May Have Room to Rise Oil has been one of the most watched commodities this year after it sank and apparently, bottomed, early in the year. Now, WTI is over $50 with $60 looming. Energy stocks could be in play again in 2017 as long as oil prices remain fairly stable. Both Tracey and Jeremy like the sector. Any Secret Industries for 2017? A lot of the popular industries are being mentioned as “must buys” for 2017 including the financials. But are there any “secret” industries that aren’t getting love from investors where there could be opportunities? Jeremy likes the casino stocks. He thinks China is coming out of its recent slowdown so he’s a fan of Macau. He also likes Las Vegas, which expects to see record visitors this year. When the economy is strong, consumers will spend on travel. Jeremy likes Wynn Resorts (WYNN) and Las Vegas Sands (LVS). Tracey also discusses an industry which investors have abandoned for years. What is it? And is there any hope for it in 2017? Favorite Stock Picks for 2017 It wouldn’t be the end of the year without talking about favorite stocks for the new year. 1. Jeremy likes Ulta Beauty (ULTA) as it is crushing it on fundamentals. No other retailer is performing as well as Ulta is right now. Tracey is also a big fan and owns it in her personal portfolio. What is the chart telling him? 2. Tracey is a fan of KeyCorp (KEY). It’s a big regional bank in a stable part of the country. The insiders, including directors, bought shares en masse in January and February of 2016 as the stock sank in the early year sell off. Tracey’s Insider Trader portfolio bought shares on the strength of the insider buys. Smart move. Shares are up over 50% since the insider buys. Even though it’s had quite the run, Tracey thinks there’s still more room to the upside next year. What else should investors and traders be watching for in 2017? Tune into this week’s podcast to find out.

Welcome to Episode #20 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. Recently, investors have been fretting about whether there are any value stocks with all the major indexes hitting new record highs. Tracey can still find plenty of value stocks but what about those that are dirt cheap? What about stocks with single digit P/Es? Of course, she also wants good fundamentals and that means Zacks Ranks of #1 (Strong Buy), #2 (Buy) and #3 (Hold). In order to narrow it further, and bring out the cheapest stocks, she also included a price-to-sales ratio under 1.0 which usually indicates that a company is undervalued. She thought she wouldn’t find many stocks with these criteria given the recent bull market rally but she was wrong. Her screen returned 97 companies. She ruled out a couple of areas that she considered “value traps” (tune into the podcast to find out what those industries are) and was able to narrow the list down to these 5 stocks. They’re all in different industries but all are dirt cheap. 5 Stocks With P/Es Under 10 1. Pilgrim’s Pride (PPC): has a forward P/E of just 9.6 and a P/S ratio of only 0.6. 2. Wabash National (WNC): never heard of this commercial truck manufacturer? It is trading with a forward P/E of only 7.5 and has a P/S ratio of just 0.4. 3. Owens-Illinois (OI) is one of the largest glass bottle manufacturers in the world. Earnings are expected to rise another 8.4% next year and it’s only trading with a forward P/E of 7.8. Cheap! 4. Chicago Bridge & Iron (CBI) is among the cheapest on this list. It has a forward P/E of 6.7 and a P/S ratio of just 0.3. And it could be a big winner if the infrastructure plan gets passed. 5. HP Inc. (HPQ) is one of the companies split from the old HP. This is the hardware side. It makes computers and printers. That may seem boring but it’s a true value stock with a forward P/E of 9.5 and a P/S ratio of 0.5. The small and mid-cap stocks are up 20% year-to-date which is the signal of a bull market. Investors need to look beyond the traditional glamour and well-known names for bargains. They are out there. Find out more about these 5 cheap stocks on this week’s podcast. PPC: https://www.zacks.com/stock/quote/PPC?cid=cs-soundcloud-ft-pod WNC: https://www.zacks.com/stock/quote/WNC?cid=cs-soundcloud-ft-pod OI: https://www.zacks.com/stock/quote/OI?cid=cs-soundcloud-ft-pod CBI: https://www.zacks.com/stock/quote/CBI?cid=cs-soundcloud-ft-pod HPQ: https://www.zacks.com/stock/quote/HPQ?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 #60 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 Maddy Johnson, Zacks Editor and co-host of the Friday Finish Line Podcast, to discuss the best, and the worst, in the retail sector right now. The retail space covers a lot of areas from apparel, to shoes, to food, to toys and even to cars. Some areas are struggling, even though the consumer is spending. Tracey and Maddy drill down into what they are seeing out at the malls, how Black Friday and Cyber Weekend are impacting the retailers, and how you can cash in. But there are two sides to every story. And there’s a lot not to like about the retailers right now, even with a 4.6% unemployment rate. The apparel retailers, in particular, are still having a tough time. Maddy and Tracey cover their sad tales and discuss when, or if, some of them will turn around in the new year. Two Retailers to Avoid Next Year 1. Express (EXPR) is seeing decent sales trends but they are having to be extra promotional in order to get them. This is a bad sign this holiday season. It means the discounts are going to be more extreme as December goes on just to move merchandise. And don’t think the consumers don’t know it. 2. Gap (GPS) is still trying to right the ship at its flagship Banana Republic chain. Both Tracey and Maddy think they are on the right track but not quite there yet. This is one of the cheapest retailers, with a forward P/E of 12, but Tracey is still waiting for a single digit P/E before she dives in. Other apparel retailers that Maddy and Tracey aren’t keen on for 2017 include Land’s End and Ascena Retail, which owns Ann Taylor, The Loft, Dressbarn and Justice, among others. But all is not lost on the retail side. There are still a handful of retailers that are doing everything right. And with consumer confidence on the rise, they are poised to cash in. The 3 Top Retail Stocks for 2017 1. Ulta Beauty (ULTA) is the top retailer in America right now. It recently saw comparable store sales of 16.7% when no one else in the industry is even doing 10%. It has posted company record comparable store sales the last 2 years. And growth is expected to continue for the next several years as it continues to open new stores. Makeup is hot. (Tracey owns ULTA in her personal portfolio.) 2. Nordstrom (JWN) continues to be on point with both its brick and mortar operations and its online segment. Earnings are expected to grow 8% next year. Analysts have been raising earnings estimates. 3. Home Depot (HD) has been on quite the run. But if consumer confidence stays elevated, those kitchens and new appliances will be bought. Tracey likes it even more if the shares pull back a bit as it trades with a forward P/E of 20. Investors have to weed through the entire retail group in order to find the winners, and avoid the losers. It won’t be easy. But Tracey and Maddy give you some tips in order to be a successful retail investor in 2017. What else should you know about the important retail sector as we head into the new year? Tune into this week’s podcast to find out.

Welcome to Episode #19 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. But with all the major stock indexes hitting new all-time highs, Tracey wonders if there are any value stocks left to invest in out there. And if there are, how do you find them? One thing to keep in mind is that the P/E, which is one of the fundamental criteria that value investors use to find their stocks, is about more than just the “P”, or Price. There is also the “E” or earnings. With the US economy improving, the E part of the equation should also be improving. This week, RV and motorhome maker Thor Industries (THO) reported record earnings. In its guidance, it said it sees 2017 as the best year the industry has ever seen in 40 years. Thor’s shares have been soaring all year. It’s great stock performance hasn’t been just a post-election move. You might think, with the shares making that big move, that Thor was probably an expensive stock. Tracey thought it must be but when she looked at its P/E ratio, she was surprised to see that it was trading with a forward P/E of just 15.5. How can it be so cheap? While the share price has been soaring, the earnings have been adjusted higher as well. How Do Value Investors Find Cheap Stocks During a Bull Rally? Tracey still runs her screens, but as stock soar, you may need to lower the number of fundamental parameters that you include. For example, Tracey ran a “classic value” screen that included P/E, P/S, P/B, P/CF, PEG and a volume over 100,000. She also added a Zacks Rank of #1 (Strong Buy) or #2 (Buy). She only got 7 stocks. Yikes. But when she adjusted the parameters to fewer criteria, and added a dividend over 2%, she got 68 stocks. That’s a much bigger selection. Here’s a selection of some of the stocks in that screen that caught her eye. Value Stocks with Dividend Yields Over 2% 1. Banco de Chile (BCH): Be cautious on companies in the emerging market but BCH has a 3.4% yield. 2. Fifth Third Bank (FITB): a major regional bank. It has a 2.05% yield. 3. Eastman Chemical (EMN): forward P/E of 10.9 and a 2.5% yield. The chemical companies are the building blocks of the manufacturing economy. 4. Kohls (KSS): the retailers are out of favor but Kohls has a forward P/E of 13.8 and a juicy dividend yielding 3.7%. Find out more of Tracey’s advice about finding value stocks during a bull market rally on this week’s podcast. Banco de Chile: https://www.zacks.com/stock/quote/BCH?cid=cs-soundcloud-ft-pod Fifth Third Bank: https://www.zacks.com/stock/quote/FITB?cid=cs-soundcloud-ft-pod Eastman Chemical: https://www.zacks.com/stock/quote/EMN?cid=cs-soundcloud-ft-pod Kohls: https://www.zacks.com/stock/quote/KSS?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 #59 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, Editor of Zacks Momentum Trader and Home Run Investor portfolio services, to talk about the hottest topic on Wall Street right now: the small cap stocks. In November 2016, the Russell 2000 staged a historic rally as it finished higher 15 sessions in a row. It was only the fifth time in history that the small caps have staged that long of a rally and it was the first long rally since 1996. Remember what happened in 1996? Alan Greenspan gave his infamous “irrational exuberance” speech in December 1996 as the US stock market heated up. But it wasn’t done moving higher for another 4 years. Is 2016’s small cap rally the start of a similar run? Or is the rally already over? In the other four times the small caps have rallied for 15+ sessions, a month after the rally ended, the small caps were up, on average, of 2.4%. And they didn’t finish in the red a single time. But past performance isn’t always indicative of future results. What do Tracey and Dave think of the rally now? Should you still get in? Small Cap Stocks to Buy Now 1. Buy the index. Tracey uses the iShares Russell 2000 (IWM) as her go-to small cap ETF. 2. Banc of California (BANC): Dave still likes it despite the short seller attack and other issues. Tracey used to own it in the Value Investor but she sold it during the recent chaos. 3. Tuesday Morning (TUES): Tracey recently added this to the Insider Trader, as the insiders have been buying shares. It’s a home goods retailer which is a strong area of retail right now. 4. Inphi Corporation (IPHI): Dave likes this small cap semiconductor. The semis have been one of the hottest areas of tech. 5. Ultra Clean Holdings (UCTT): Dave also likes this tech company. He owns it in the Zacks Momentum Trader. What sectors are moving the small caps? The banks have been hot since the election. The financials make up the largest sector in the small cap index, at 18.9%. Not surprisingly, they’ve been a driving force in the rally. Tracey and Dave disagree about the near-term future of the financial stocks. Listen in to find out why. But Information Technology and Industrials are also a big part of the index at 17.29% and 14.8%, respectively. Should you be buying small cap industrials? Tracey likes the industrials. Dave also talks about his love of small cap tech. What else should you know about the historic small cap rally? Tune into this week’s podcast to find out.

Welcome to Episode #18 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 was recently revealed that Warren Buffett’s Berkshire Hathaway bought shares in 4 airline stocks. This was shocking because Buffett has railed against the airline stocks for decades. He first bought into the industry in 1989 when he invested in US Airways and it did not end well. He has been so anti-airline over the years he has called them “death traps” for investors. But new quarterly filings show that Berkshire has bought shares in: 1. Delta Air Lines, Inc. (DAL): forward P/E of 8.5 2. United Airlines (UAL): forward P/E of 8 3. American Airlines (AAL): forward P/E of 7.9 4. Southwest Airlines Co. (LUV): forward P/E of 12.4 Are the airlines still value stocks? Should value investors be following Berkshires lead? Tracey examined each of these to see if they are still attractive buys. Additionally, she looked at a couple other airlines that she does like including Hawaiian Holdings (HA), which is the largest airline serving Hawaii, and Copa Holdings SA (CPA) which is based in Panama and has a niche in Central and South America’s emerging middle class. Tracey also examines why someone would need to buy FOUR airlines stocks. Why not just 1 or 2? Find out what else Tracey thinks of Buffett’s airline buy and more on this week’s podcast. Delta Airlines: https://www.zacks.com/stock/quote/DAL?cid=cs-soundcloud-ft-pod United Airlines: https://www.zacks.com/stock/quote/UAL?cid=cs-soundcloud-ft-pod American Airlines: https://www.zacks.com/stock/quote/AAL?cid=cs-soundcloud-ft-pod Southwest Airlines; https://www.zacks.com/stock/quote/LUV?cid=cs-soundcloud-ft-pod Hawaiian Airlines: https://www.zacks.com/stock/quote/HA?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 #58 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 Sheraz Mian, Zacks Director of Research, and a former oil analyst, to discuss where the oil market stands at the end of 2016 and what oil stocks investors should be looking at heading into 2017. Tracey and Sheraz first discussed the oil stocks in late 2015 when the crude sell-off was just in the first innings. It wouldn’t hit $25 until February 2016. Back in 2015, Tracey and Sheraz were both worried about which companies had the best balance sheets and how many would survive the most vicious sell off in crude in the last 50 years. But a year later, the story has changed. The US and International rig counts have bottomed and are slowly starting to trickle up. Crude is up off its lows and while it’s not near the $60 or $70 level many thought it would be at the end of the year, it’s in a zone where the oil companies can make money. Cost cutting is mostly complete which means fewer layoffs. The lending situation has also improved which makes it easier for energy companies to renegotiate loans with their banks. Where does this leave investors looking to get into oil stocks? WTI has fallen 14% this fall which has pushed down the exploration and production stocks from their 2016 highs. Sheraz believes this is a buying opportunity in that area, especially for long term investors. In the short term, he still expects crude and the oil stocks to be volatile. The Best Oil Stocks for 2017 1. Chevron (CVX) is the “safe” play and Sheraz’s favorite among the Big Oil stocks. 2. Apache (APA) just made a big discovery in the Alpine High and analysts believe this has big potential in the next few years. Tracey owns this stock in her personal portfolio. 3. EOG Resources (EOG) is very diversified. It has over 14,000 drilling locations in numerous areas. 4. Pioneer Natural Resources (PXD) has one of the best balance sheets in the industry. 5. In the small and mid-cap E&P sectors, look at Whiting Petroleum (WLL) which is strong in the Baaken and Synergy (SYRG), a small E&P in the Wattenberg in Colorado. The insiders have been buying shares in SYRG. Sheraz also thinks investors can poke around in some of the big service companies. With some rigs being reactivated, the first contractors they will call are companies like Schlumberger (SLB) and Halliburton (HAL). Sheraz and Tracey still think it’s too early to get into the niche oil service companies like those that transport personnel to the rigs or provide safety gear. The industry, while on the upswing, isn’t yet at full throttle. Those might be plays later in 2017. What else should you know about the oil stocks and how to play them? Tune into this week’s podcast to find out. Chevron: https://www.zacks.com/stock/quote/CVX?cid=cs-soundcloud-ft-pod Apache Corp: https://www.zacks.com/stock/quote/APA?cid=cs-soundcloud-ft-pod EOG Resources: https://www.zacks.com/stock/quote/EOG?cid=cs-soundcloud-ft-pod Pioneer Natural Resources: https://www.zacks.com/stock/quote/PXD?cid=cs-soundcloud-ft-pod Whiting Petro: https://www.zacks.com/stock/quote/WLL?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 #18 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. With Donald Trump winning the US presidential election, a lot of investors might be afraid of the stock market. There could be considerable market volatility over the next few months until he takes office in January. But value investors know that political events can create buying opportunities. When everyone else is fearful, value investors look to buy. Tracey has put together a list of stocks that value investors should consider in the wake of the election results. 1. Kansas City Southern (KSU) sold off the day after the election on fears about Mexico. It is the only US railroad that has rail lines in Mexico. Tracey owns it in her own personal portfolio. 2. Horizon Pharmaceutical (HZNP) is a generic drug maker. It’s dirt cheap but the generics are under investigation by the Justice Department. Be cautious. 3. Tutor Perini (TPC) does big infrastructure construction projects like casinos and airports. 4. Mastec (MTZ) also does big construction projects. Trump has said he wants to spend on highways, bridges and other infrastructure projects. 5. KeyCorp (KEY) is one of the large regional banks. The banks should benefit from a rise in the interest rates and the stocks are undervalued. What does she think about investing in Mexico right now? It’s one of her favorite international plays and the Mexico ETF (EWW) has sold off. Should you be buying? Find out what else Tracey is looking to buy in the post-election volatility on this week’s podcast. Kansas City Southern: https://www.zacks.com/stock/quote/KSU?cid=cs-soundcloud-ft-pod Mastec: https://www.zacks.com/stock/quote/MTZ?cid=cs-soundcloud-ft-pod Horizon Pharma: https://www.zacks.com/stock/quote/HZNP?cid=cs-soundcloud-ft-pod Key Corp: https://www.zacks.com/stock/quote/KEY?cid=cs-soundcloud-ft-pod Tutor: https://www.zacks.com/stock/quote/TPC?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 #57 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 Zacks very own Greek experts Harry Kougias and Domina Tingos. They are Greek natives, have friends and family in Greece and visit yearly. Both of them were on the very first episode of the Market Edge in October 2015 discussing the Greece crisis and whether or not you should invest. This is a follow-up podcast to see if things have improved or gotten worse. In 2015, the worries were whether or not Greece would stay in the Eurozone and whether or not Greeks would be able to get money out of the ATMs. Flash forward a year and the capital controls are still in effect in Greece and it’s still in the Union, but there are other issues that have moved to the forefront. 1. There are now 60,000 refugees or migrants in Greece which are straining social services and hurting tourism in the eastern islands. 2. The Greek banks have about $120 billion in bad loans on the books, with 41% of those delinquent mortgages. There have been violent protests regarding the repossession, or foreclosure, of homes. Supposedly about 50,000 properties are up for repossession by the banks next year. But will it happen? 3. One bright spot is still tourism. In 2015, Greece saw a record number of visitors. Through September of 2016, it is again on pace for another record year as Greece has stolen visitors from Turkey and Egypt, which have been plagued by political unrest. Tourism is about 20% of GDP. But is it enough to keep the economy going? In 2015, Domina and Harry were still optimistic about the future for younger Greeks but what do they think this year? And what do they think about investing in Greece through the Greek ETF (GREK)? It is down 8.5% year-to-date. Tracey discusses whether it is a contrarian play right now. There are other ways to play the Greek economy, including by buying cruise ships like Royal Caribbean (RCL) and Carnival (CLL) as well as Ryan Air (RYAAY). What else should you know about Greece, its debt crisis and its economy? Tune into this week’s podcast to find out. GLOBAL X MSCI GREECE ETF: https://www.zacks.com/funds/etf/GREK/profile?cid=cs-soundcloud-ft-pod Royal Caribbean: https://www.zacks.com/stock/quote/RCL?cid=cs-soundcloud-ft-pod Carnival: https://www.zacks.com/stock/quote/CCL?cid=cs-soundcloud-ft-pod Ryanair Holdings: https://www.zacks.com/stock/quote/RYAAY?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