- (0:45) – Growth Stock Sell Off
- (5:45) – Stocks On Sale: Is This A Time To Buy or Sell?
- (10:00) – Top Picks To Keep On Your Radar
- (21:10) – Is An ETF The Safer Play?
-
(27:20) – Episode Roundup:
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Welcome to Episode #271 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is going solo to talk about the growth stock sell-off and how individual investors react to it.
Recently on Twitter, a well-known trader posted a chart showing his portfolio for the last 18 months.
He had started with $45,000 in January 2020 and had grown it to over $4 million at the beginning of 2021, before it had cooled off in the growth stock sell-off.
But, according to his chart, it was recently still valued at $2.4 million.
Glass Half Empty or Half Full?
Do you see it as a triumph that he has grown the portfolio to $2.4 million, or a failure that he didn’t cash out when it was over $4 million?
If you see the triumph, you are seeing the glass as half full. You’re the optimist.
If you can’t believe he didn’t cash in at the top, you are a glass half empty investor. The pessimist.
How You Will Invest in a Stock Correction
Many growth stocks are in a correction, which is a 10% decline from the prior highs.
Some, however, have declined more than 20%, which puts them in a bear market.
Whether you are an optimist, or a pessimist, will determine how you react to these events as an investor.
Tune into the podcast to find out how.
Buying Opportunities in Growth Stocks: Yes or No?
1.
Shopify
SHOP
has fallen over 25% in the last 3 months despite being one of the big pandemic winners. Revenue is still expected to be up another 43% in 2021 and 32% in 2022. But with the shares trading with a forward P/E of 275, is valuation still stretched?
2.
PayPal
PYPL
shares have fallen 18% in the last 3 months, making the stock cheaper on a P/E basis. However, it still trades at 52x so it’s not a value by any means. But analysts still expect it to do double digit revenue growth this year and next.
3.
DraftKings
DKNG
has fallen 25% in the last 3 months, making it officially in a bear pullback. Analysts are still bullish on revenue, however, with it expected to rise 84% in 2021 to $1.13 billion from $614.5 million in 2020. Is it a deal with this pullback?
4.
Exact Sciences
EXAS
is the maker of Cologuard, the at-home colon cancer screening test. Shares have plunged 31% in the last 3 months even as one analyst has raised his estimate for 2021 in the last week for 2021. Is the sell-off overdone?
5.
Tesla
TSLA
was one of the hottest stocks of 2020, so it shouldn’t be surprising that some are taking profits in 2021. Shares have fallen nearly 28% in the last 3 months. Yet earnings are expected to grow by 88% in 2021 and another 50% in 2022. Is the good news already priced in?
What else do you need to know about navigating the sell-off in growth stocks in 2021?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns shares of EXAS in her personal portfolio and in Zacks Value Investor portfolio.]
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>
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