3 “Expensive” Stocks That Are Historically Cheap

Whether you’ve been investing for a few months or multiple decades, it’s been a buckle-up-and-hold-on sort of year. We’ve watched as the S&P 500 set records for the fastest bear market decline in history, as well as the quickest rebound to fresh highs from a bear market low. If anything, 2020 has been a reminder that trying to time the market is fruitless.

This wild year for equities could also represent a coming-out party for value stocks. Historically speaking, value stocks outperform growth stocks during periods of economic expansion, which is where the U.S. economy appears headed.

However, this doesn’t mean that investors should ignore stocks that are perceived as expensive. While many pricey stocks will remain so for the foreseeable future, a trio of fundamentally expensive stocks are actually historically cheap, provided you don’t use the price-to-earnings ratio as your sole measure of value.

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Amazon

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Stocks climb, closing out biggest weekly gain in 3 months | National News

The S&P 500 rose 30.31 points to 3,477.14. The Dow Jones Industrial Average gained 161.39 points, or 0.6%, to 28,586.90. The gain nudged the Dow into positive territory for the year. The Nasdaq composite climbed 158.96 points, or 1.4%, to 11,579.94.

Small-company stocks added to their solid gains this week. The Russell 2000 index picked up 9 points, or 0.6%, to 1,637.55. The index jumped 6.4% this week.

Investors have been clamoring for more federal aid since the expiration of extra benefits for laid-off workers and other stimulus for the economy that Congress approved earlier this year. Economists say the outlook is grim without such support, and the chair of the Federal Reserve has said repeatedly it will likely be necessary.

Still, the prospects for a new deal on more aid have been shaky, especially this week.

Trump said that House Speaker Nancy Pelosi was negotiating in bad faith when

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2 Cheap Dividend Stocks Trading Below Book Value

Investing in a cheap dividend stock can be a great way to secure a high yield while also maximizing your potential returns over the long term. Below are two dividend stocks that are paying more than 5% annually and that are trading below their book values that could be great additions to your Tax-Free Savings Account (TFSA).



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RioCan

RioCan Real Estate Investment Trust (TSX:REI.UN) is down more than 45% this year, and investors who are willing to take on some risk investing in retail can score a big potential return here. The real estate investment trust (REIT) provides investors with recurring monthly payouts that can provide lots of regularity and a steady stream of cash flow for your portfolio. And at $0.12 every month, investors can earn $1.44 on an annual basis for every share of RioCan that they own. That’s right around 10%

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Election Watch: 2 Stocks to Buy in November

It seems fair to say at this point that the upcoming election is a bit divisive. When looking at stocks, it’s helpful to put political persuasions aside and seek out companies that won’t get drawn up in the volatility and debate.

Keep an eye on sports betting

It’s not going away. Neither party has done much of anything to impede the spread of states legalizing sports betting. DraftKings (NASDAQ:DKNG) and Penn National Gaming (NASDAQ:PENN) offer compelling access to an industry that is in the very early stages of realizing its full revenue potential. With professional golf’s Masters Tournament set to be held in November, an NFL season that seems likely to carry all the way through, and the pending return of more college football teams in October, there are some big betting opportunities that will roll through the fall and into winter. It’s a market that can avoid the political

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5 Tips for Making Money in Cheap Stocks



a telephone on a table: A laptop, pencil, pair of eyeglasses, and many coins rest on a wooden table.


© Source: Shutterstock
A laptop, pencil, pair of eyeglasses, and many coins rest on a wooden table.

First, let’s get something straight. The definition of penny stocks is entirely subjective. What I think constitutes a risky penny stock, you might feel is a robust, thriving enterprise.

Therefore, before I answer the question of whether you can make money in penny stocks, I’m going to explain what I believe is the best definition of a penny stock. From there, I’ll tackle the five rules investors should follow to be successful in trading cheap investments like penny stocks.

The Definition: Merriam-Webster defines penny stock as “a usually unlisted highly speculative stock usually selling for a dollar or less.” Hence, the penny-stock moniker. Others are more liberal in their interpretation of what constitutes a penny stock.

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The Successful Investor, an investment newsletter publisher I do some work for here in

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Are Bank Stocks Cheap or Value Traps?

Stocks in the Zacks Major Banks industry, which includes JPMorgan (JPM), Wells Fargo (WFC), Citigroup (C) and others that are on deck to report results this week, have only modestly recovered from their March 23rd lows and lag the broader market in a major way. Even within this beleaguered space, Wells Fargo is in a league of its own, with the stock losing further ground for company-specific reasons.

The chart below shows the performance of the S&P 500 index (red line), the Zacks Finance sector (orange line), JPMorgan and the Zacks Tech sector (green line) since the market’s post-pandemic bottom on March 23rd.

 

 

 

 

 

 

 

 

 

 

 

 

JPMorgan, the undisputed banking leader represented by the blue line in the above chart, has been a laggard since the market’s bottom. Bank of America (BAC) and Citigroup, also on deck to report results this week, have done better than JPMorgan since March. But

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7 Tech Stock Ideas That Aren’t FANG Stocks

KeyBanc loves these non-FANG tech stocks.

The tech sector has led the stock market rally since the financial crisis back in 2008, and many tech stocks have surged since the 2020 March lows. The so-called FANG stocks — Facebook (ticker: FB), Amazon (AMZN), Netflix (NFLX) and Alphabet (GOOG, GOOGL) — have accounted for much of that long-term growth but have now become so large that investors are concerned about their ability to maintain their growth rates. After years of FANG outperformance, it may be time for some non-FANG stocks to shine, KeyBanc says. Here are seven tech plays the KeyBanc analyst team loves that aren’t FANG stocks.

Angi Homeservices (ANGI)

Angi Homeservices is the owner of Angie’s List, a digital marketplace for home services. Analyst Justin Patterson says Angi should benefit from an uptick in homeownership, home investment and home improvement in 2020 and beyond. In addition, he says growing

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Wall Street strategy chief says the market is flashing bullish signals as more stocks start to rally


  • Miller Tabak’s chief market strategist told CNBC on Friday the stock market is signaling it has upside potential before Election Day. 
  • Matt Maley cited the outperformance of the Russell 2000 index and said small-cap stocks and chip stocks have room to grow. 
  • He’s less optimistic about the market in the long term, however. A second wave of the coronavirus and an expensive market could be bearish after the election, he said. 

Matt Maley of Miller Tabak  told CNBC on Friday that the stock market is signaling it has upside potential before Election Day.

The chief market strategist said he is watching the recent outperformance of small-cap stocks. As of Thursday, the Russell 2000 small-cap index was up almost 6% week-to-date, compared to a roughly 3% gain in the S&P 500. The broadening out of the stock market rally, which was previously dominated by mega-cap tech names, is

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A Wall Street strategy chief says the market is flashing bullish signals as more stocks start to rally



a man wearing a suit and tie: CNBC TV


© CNBC TV
CNBC TV

  • Miller Tabak’s chief market strategist told CNBC on Friday the stock market is signaling it has upside potential before Election Day. 
  • Matt Maley cited the outperformance of the Russell 2000 index and said small-cap stocks and chip stocks have room to grow. 
  • He’s less optimistic about the market in the long term, however. A second wave of the coronavirus and an expensive market could be bearish after the election, he said. 

Matt Maley of Miller Tabak  told CNBC on Friday that the stock market is signaling it has upside potential before Election Day.

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The chief market strategist said he is watching the recent outperformance of small-cap stocks. As of Thursday, the Russell 2000 small-cap index was up almost 6% week-to-date, compared to a roughly 3% gain in the S&P 500. The broadening out of the stock market rally, which was previously dominated by

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Penny stocks are cheap and often see massive gains, but they’re also very risky. Here’s what you should know before investing.



On the plus side, penny stocks offer a cheap chance to buy a winner; on down side, they can be hard to research and trade. Bill Oxford/Getty Images


© Bill Oxford/Getty Images
On the plus side, penny stocks offer a cheap chance to buy a winner; on down side, they can be hard to research and trade. Bill Oxford/Getty Images

  • Penny stocks are securities that trade at less than $5 per share, often in unsupervised over-the-counter markets.
  • Penny stocks are considered lucrative but high-risk investments: volatile, illiquid, and often subject to scams.
  • Investors interested in penny stocks should deal with those listed on larger exchanges and sold by established brokers.
  • Visit Insider’s Investing Reference library for more stories.

Penny stocks have become more popular than ever, tempting investors with a low cost of entry and the prospect of significant financial gains. Stories of shares making gains of over 4,000% in just months add to their appeal, and new trading technology makes it easier than ever to enter the market.

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But while they can be lucrative,

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