Zacks Investment Research | Jan 17, 2019 11:49PM ET
Welcome to Episode #126 of the Value Investor Podcast
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service , shares some of her top value investing tips and stock picks.
This week, it’s all about investing styles.
Do you know what your investing personality is?
The Tortoise or the Hare?
If you like the latest IPOs, the hot tech stocks and get a charge out of news on the pot stocks, you may be a “hare” investor. You want to get to the finish line fast and don’t care what you have to pay to get there.
Conversely, do you like to buy and hold stocks for years? Are you proud of holding onto a single stock for a decade? Do you care more about what you pay for a business than you do the chart?
Then you may be a tortoise investor.
Remember, there’s no “right” answer but most people know what they gravitate towards. If you’re going to invest, you might as well be comfortable in your investing style.
The Hare Is Winning
Over the last 2 years, the growth strategy has been winning the race.
The Vanguard S&P 500 Growth ETF (VOOG ) has crushed the returns of both the S&P 500 and the Value S&P 500 ETF. The growth big caps are up 26% over that two-year period while the S&P 500 is up 15% and the value big caps are up just 4.2%.
But past performance doesn’t guarantee future returns.
2 Top Hare Stocks Right Now
To find some of the top “hare” stocks, aka companies with big growth in both earnings and sales, screen for Zacks Ranks of #1 (Strong Buy) and #2 (Buy) along with a top 50% Industry Rank.
You can even add a top Zacks Style Score of A or B on top of that in addition to double digit earnings and/or sales growth.
2 Top Tortoise Stocks Right Now
You can run the same screen you ran for growth stocks, but switching out the hyper earnings growth for value fundamentals, to find the tortoise stocks.
Remember to screen for the Zacks Rank as well so that you can get the added advantage of rising earnings estimates.
Remember, just because the hares have had the upper hand the last 2 years, doesn’t mean that they will remain ahead in the race.
What else should you know about investing in the tortoise or hare styles?
Listen to this week’s podcast to find out.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Zacks Investment Research
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