For Immediate Release
Chicago, IL – July 28, 2016 – Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will discuss the hottest value investing topics and share her secrets on how to find hidden gem stocks in the market today. To listen to the podcast, click here: ( https://www.zacks.com/stock/news/225388/cheap-stock-or-value-trap )
In this episode, Tracey covers the value investor’s problem of determining whether or not a stock is actually cheap or if it’s a value trap. There are a lot of stocks that are trading with low P/E ratios but they’re not all great deals.
Tracey discusses:
1. What’s the definition of a value trap?
2. Tips on how you can easily distinguish between a cheap stock and a value trap
She provides 4 examples of a cheap stock. They all have forward P/Es well below the overall market and also well under the level she uses to find value stocks, which is a forward P/E of 15.
But are these also value traps?
1. Greenbrier ( GBX – Snapshot Report ) : the railcar maker with a forward P/E of just 5.4
2. CF Industries ( CF – Analyst Report ) : nitrogen products manufacturer with a forward P/E of 14
3. General Motors ( GM – Analyst Report ) : automobile manufacturer with a forward P/E of 5.6
4. Apple ( AAPL – Analyst Report ) : technology gadget maker with a forward P/E of 11.7
If they are a value trap, should you be buying them anyway? Tune into this week’s podcast to find out.
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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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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APPLE INC (AAPL): Free Stock Analysis Report
GENERAL MOTORS (GM): Free Stock Analysis Report
GREENBRIER COS (GBX): Free Stock Analysis Report
CF INDUS HLDGS (CF): Free Stock Analysis Report
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