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The Value Investor's Biggest Challenge

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  • (0:45) - Exploring The Specialty Retail Stores: Niche Shopping
  • (10:10) - The Positives and Negatives of Value Investing: Top Stock Picks
  • (21:05) - Episode Roundup: ECHS, AMZN, GIII, EXPR, GPS, LE, PXD, JPM


Welcome to Episode #238 of the Value Investor Podcast

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

This week, it’s time to consider the value investor’s biggest challenge: how to be patient.

Most value investors are long-term buy and hold investors. But buy and hold means owning through some periods of underperformance, no matter what the company.

Even Amazon (AMZN - Free Report) has had long periods where it has underperformed.

But when should you hold and when should you abandon ship?

The Hated Apparel Retailers

There are always industries that are out of favor on Wall Street.

For the past few years, two of the most “hated” industries were the apparel retailers and oil.

The Street believed for years that apparel retailers who operate in the malls like Chico’s (CHS - Free Report) , Express (EXPR - Free Report) and the Gap (GPS - Free Report) were doomed.

And then the pandemic hit.

Some of those stocks became dirt cheap. Chico’s, for example, traded under $2 a share for months in 2020.

2021 Stock Winners

But 2021 has seen a change in the guard. The “hated” industries became the darlings of the Street, with many of the stocks staging big stock rallies.

Chico’s, for example, is up 233% year-to-date even though it remains an underperformer over the last 5-year period.

Energy, surprisingly, has been the best performing sector this year.

Pioneer Natural Resources (PXD - Free Report) , one of the large exploration and production companies, is up 45% year-to-date while the S&P 500 is up “just” 11.9%.

But is it really that easy to invest in the “hated” industries?

Find out all you need to know about being a patient investor on this week’s podcast.

Legal Marijuana: An Investor’s Dream

Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.

Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.

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