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Zacks Value Investor Highlights: Apple, Amazon, Alphabet, China Life Insurance and Jacobs Engineering

Wall Street finished in the green reversing its five-day negative trend on Thursday following news that United States and China have ramped up their efforts to resolve lingering trade disputes

For Immediate Release

Chicago, IL – May 11, 2018 – 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/303013/lessons-from-warren-buffetts-investing-mistakes

Lessons from Warren Buffett's Investing Mistakes

The meeting is now a big annual event for value investors with multiple days of activities. Mr. Buffett is also doing more interviews than ever before. This time he appeared on CNBC, Yahoo Finance, and a host of other platforms.

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While Berkshire revealed it had bought an even bigger position in FANG stock, Apple AAPL, Buffett also lamented the ones that got away: specifically, Amazon AMZN and Alphabet GOOGL.

It brought up an interesting question: can value investors buy non-value stocks?

Should Value Investors Buy Growth Stocks?

At the meeting, Buffett basically admitted that he didn’t buy the other FANG names, other than Apple, for Berkshire because they were too expensive.

He didn’t buy into the rosy growth projections but has been proven wrong.

Obviously, Buffett’s mandate to only buy value stocks has worked for him. But it may not work for every value investor. The rest of us don’t have a “value only” mandate.

Should value investors still buy some growth stocks in their portfolio?

Classic Value Stocks are Still Available

If you want to stick with the classic value stock, you’ll have buying opportunities, but not many of them.

Tracey screened for stocks with low P/Es, P/B ratios, P/S ratios and PEGs along with Zacks Ranks of #1 (Strong Buy) and #2 (Buy).

With this narrow screen, just 13 stocks came through.

Here are 2 that look intriguing.

2 Classic Value Stocks

  1. China Life Insurance (LFC has a forward P/E of just 13.1 and a PEG of 0.5. Charlie Munger talked about investing his personal portfolio in Chinese stocks in an interview on CNBC. He thought they were cheap. There’s just 1 estimate on this company, though, so investors need to do their research.

  2. Jacobs Engineering Group (JEC is merging with CH2M and now has 77,000 employees. In its recent earnings report, it raised full year EPS guidance. It has a forward P/E of just 14.1 and a PEG of 1.

Value investors can also enhance their portfolios by buying value stock ETFs.

But which ones should you be buying?

Find out on this week’s podcast.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
Jacobs Engineering Group Inc. (JEC) : Free Stock Analysis Report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
China Life Insurance Company Limited (LFC) : Free Stock Analysis Report
 
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