Chicago, IL – November 11, 2024 – Zacks Market Edge 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/2367569/5-popular-stocks-buy-or-not
5 Popular Stocks: Buy or Not?
Welcome to Episode #423 of the Zacks Market Edge Podcast.
(0:20) - Where Should You Consider Investing Right Now?
(2:10) - Top Stock Picks To Keep On Your Watchlist
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.
This week, Tracey is going solo to answer some of your questions about a variety of stocks. Leave your questions in the YouTube comments. Tracey looks at them and values your feedback.
People have left questions on YouTube about a bunch of different stocks recently, and combined with questions she got at football tailgating and from family and friends, she’s bringing you 5 stocks.
Drilling Down on the Zacks Rank and Earnings
What are these companies Zacks Rank? The Zacks Rank is a short-term recommendation of just 1 to 3 months. It is based on changes to analyst earnings estimates. It can change daily, and often does during earnings season.
The Zacks Rank of 1 is the highest Rank. That is a “Strong Buy” stock. The Zacks Rank of 5 is the lowest Rank. That is a “Strong Sell.”
About 5% of all stocks that have the Rank are a Strong Buy and 5% are a Strong Sell. A Rank of 3 is in the middle, as a “Hold.” About 80% of all stocks that have a Rank are Holds.
The Zacks Rank can help stock investors find hidden gems, or steer them away from a company that is struggling.
Are these popular stocks steals or misses?
5 Popular Stocks: Buy or Not?
1. Nestle S.A. NSRGY
Nestle is a Swiss company with a market cap of $233 billion. It’s products include chocolate, drinks, pet care, coffee, cereals and others.
Shares of Nestle have fallen 13% over the last 5 years and are at 5-year lows. It trades with a forward Price-to-Earnings (P/E) ratio of 16.9. A P/E under 15 is considered a value stock. Nestle also pays a dividend, which is yielding 2.3% on Zacks.
Is Nestle a buy or not?
2. The Hershey Company HSY
The Hershey Company, which is a food company specializing in snacks, especially of the chocolate kind, recently reported third quarter results. Hershey lowered full year guidance due to high cocoa prices and a challenging consumer environment.
Shares of Hershey are down 10% year-to-date. Is it cheap? Hershey has a forward P/E of 18.8. A P/E under 15 is considered to be a value stock. It pays a dividend, yielding 3.1%.
Is Hershey a buy or not?
3. IonQ, Inc. IONQ
IonQ is in quantum computing. Traders have jumped into the stock. Shares of IonQ are up 81.8% year-to-date.
But earnings are expected to be negative this year and next. The Zacks Consensus is looking for a loss of $0.84 in 2024 and a loss of $1.09 in 2025. Because the earnings are in the negative, it doesn’t have a P/E ratio.
Is IonQ a buy or not?
4. Starbucks Corp. SBUX
Starbucks has a new CEO and a new strategy to boost the brand. Earnings are expected to decline 4.8% this year. It’s a Zacks #5 Strong Sell stock.
Shares of Starbucks are up 17.5% over the last 5 years compared to the S&P 500 which has gained 92.9%. Is it cheap? Starbucks trades with a forward P/E of 30.5. It’s certainly not a value at that level.
Is Starbucks a buy or not?
5. Carvana Co. CVNA
Carvana, the e-commerce platform to buy and sell used cars, has seen a big turnaround in its shares in 2024. Shares of Carvana are up 394% year-to-date.
It’s not cheap. Carvana has a forward P/E of 230. This is extremely high. But does it have the growth? Earnings are expected to be up 38.7% this year. That’s great growth. Carvana is a Zacks Rank #1 (Strong Buy) stock.
Is Carvana a buy or not?
What else do you need to know about these 5 popular stocks?
Tune into this week’s video podcast to find out.
[In full disclosure, Tracey owns shares of SBUX in her personal portfolio.]
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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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