Funko, Lennar, Tesla, Wayfair and G-III clothing

0

For immediate release

Chicago, IL – April 23, 2021 – Zacks Value Investor is a podcast hosted weekly by Zacks Market Strategist Tracey Ryniec. Each week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and their impact on your life. To listen to the podcast, click here:

Warning: do you know your P / E ratio?

Welcome to Episode 233 of the Value Investor podcast.

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

Many value investors look for cheap stocks using a price / earnings ratio, also known as the P / E ratio.

But do you know which P / E ratio you are looking at?

P / E rear and front

If you’ve looked at the P / E report for a toy company Funko FNKO on YahooFinance, you would see it’s 180x.

Shares are up more than 90% since the start of the year.

It does seem like this stock is expensive, right?

But YahooFinance uses the final P / E ratio on its summary page, which looks at last year’s earnings.

Other financial sites, like Zacks.com, use the forecast P / E, which examines analysts’ estimates of 2021 earnings.

Funko’s P / E forward is only 23.

It’s a big difference if you’re trying to decide if the stock is “expensive” by looking at the P / E ratio.

Look at the results this year

With many companies recording depressed profits in 2020 due to the COVID pandemic, P / E ratios will be less reliable, depending on which ones you are looking at.

1. Lennar LEN has a forward P / E of 9.5, which is similar to its P / E ratio of 10.4. Stocks are up sharply but the forward P / E is lower as earnings are expected to rise around 40% this year.

2. You’re here TSLA appears to be extremely expensive, with a P / E ratio of 1132. But earnings are expected to grow 90% year-over-year, and stocks only rose 2% in 2021, which puts the P / E anticipated to only 167.

3. Wayfair W was a pandemic winner in 2020 and profits have skyrocketed. But profits are expected to drop 53% in 2021. Wayfair’s final P / E is 169, but the forward picture is cheaper, at 138x.

4. G-III clothing The GIII was really hit in 2020 with a significant drop in profits. On YahooFinance, it has a P / E ratio of 65, which makes it expensive. But with profits set to rise 223% in 2021 as buyers buy more dresses and jeans, he has a forward P / E on Zacks of just 13. It’s really cheap.

What else do you need to know about the P / E ratio and find “value” stocks?

Tune in to this week’s podcast to find out.

[In full disclosure, Tracey owns shares of FNKO in her personal portfolio.]

Legal marijuana: an investor’s dream

Imagine entering an early stage in a young industry poised to skyrocket, growing from $ 17.7 billion in 2019 to $ 73.6 billion projected by 2027.

While marijuana stocks performed better when the pandemic took hold than the market as a whole, they were pushed down. Now is exactly the right time to get in on solid companies selected at a fraction of their value before COVID hits. Zacks’ special report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent review.

Free Download Marijuana Moneymakers >>

Media contact

Zacks investment research

800-767-3771 ext. 9339

[email protected]

https://www.zacks.com/performance

Past performance is no guarantee of future results. The potential for loss is inherent in any investment. This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether an investment is suitable for any particular investor. It should not be assumed that investments in securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. Opinions or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research is not engaged in investment banking, market making or securities asset management activities. These returns come from hypothetical portfolios composed of stocks with a Zacks rank = 1 that have been rebalanced monthly with no transaction fees. These are not the returns of actual equity portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today you can download 7 best stocks for the next 30 days. Click to get this free report

Tesla, Inc. (TSLA): Free Inventory Analysis Report

Lennar Corporation (LEN): Free Inventory Analysis Report

GIII Apparel Group, LTD. (GIII): Free Stock Analysis Report

Wayfair Inc. (W): Free Stock Analysis Report

Funko, Inc. (FNKO): Free Stock Analysis Report

To read this article on Zacks.com, click here.

Zacks investment research

Share.

About Author

Comments are closed.