Zacks Market Edge Highlights: Facebook, Amazon, Apple, Netflix and Alphabet

Zacks Market Edge Highlights: Facebook, Amazon, Apple, Netflix and Alphabet Read More...

For Immediate Release

Chicago, IL – August 29, 2019 – Zacks Market Edge is a podcast hosted weekly by cks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:

Are the FAANG Stocks on Sale?

Welcome to Episode #191 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 she went solo to take a look at the market volatility and whether or not the FAANG stocks are on sale.

The FAANGs soared in 2017 and took a dive in late 2018, along with the rest of the market.

But most of them bounced back in the first six months of the year, along with the rest of the stock market, only to see some weakness in the summer of 2019.

Should you be buying?

Are the FAANGs Cheap?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="1. Facebook FB is trading with a median P/E of 22.6 in 2019 which is the lowest median for the company since its 2012 IPO. In 2012, it traded with a forward median P/E of 198x. Its current P/E is 28.2 as shares have sunk 7% in the last month. Is Facebook finally on sale?” data-reactid=”28″>1. Facebook FB is trading with a median P/E of 22.6 in 2019 which is the lowest median for the company since its 2012 IPO. In 2012, it traded with a forward median P/E of 198x. Its current P/E is 28.2 as shares have sunk 7% in the last month. Is Facebook finally on sale?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="2. Amazon AMZN has a forward P/E of 73 which sounds expensive but it’s the lowest since the 2009-2010 period. That was before AWS burst on the scene. Shares are down 8.1% in the last month and 8.9% over the last year. That’s underperforming the S&P 500 which is down about 1% during that same period. Is now the time to buy?” data-reactid=”29″>2. Amazon AMZN has a forward P/E of 73 which sounds expensive but it’s the lowest since the 2009-2010 period. That was before AWS burst on the scene. Shares are down 8.1% in the last month and 8.9% over the last year. That’s underperforming the S&P 500 which is down about 1% during that same period. Is now the time to buy?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="3. Apple AAPL has long been known as the “value” stock of the FAANG. Heck, even Warren Buffett bought shares in 2016 when it was trading with a median P/E of 12. Now, the forward P/E is 17.7. That’s hard dirt cheap even though investors get a dividend, yielding 1.5%. Shares have fallen 6% over the last year. Are they cheap enough for value investors to jump in?” data-reactid=”30″>3. Apple AAPL has long been known as the “value” stock of the FAANG. Heck, even Warren Buffett bought shares in 2016 when it was trading with a median P/E of 12. Now, the forward P/E is 17.7. That’s hard dirt cheap even though investors get a dividend, yielding 1.5%. Shares have fallen 6% over the last year. Are they cheap enough for value investors to jump in?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="4. Netflix NFLX has the highest P/E of the FAANGs, with a forward P/E of 90. However, it used to be triple digits but the shares have fallen 13% over the last month which has brought the P/E down. This 90 P/E is also the lowest P/E for the company since 2010-2011 when the median P/E was in the 40s. Is this a buying opportunity?” data-reactid=”31″>4. Netflix NFLX has the highest P/E of the FAANGs, with a forward P/E of 90. However, it used to be triple digits but the shares have fallen 13% over the last month which has brought the P/E down. This 90 P/E is also the lowest P/E for the company since 2010-2011 when the median P/E was in the 40s. Is this a buying opportunity?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="5. Alphabet GOOGL shares are down 6.9% in the last year while the S&P 500 has fallen only about 1%. It has a median P/E this year of 23.5, which is the lowest median P/E in 6 years. However, in 2012, it traded as low as 17.2x. Sales are still expected to jump 20.2% in 2019, continuing its streak of 20% revenue growth. But do shares have to go lower for it to be a true bargain?” data-reactid=”32″>5. Alphabet GOOGL shares are down 6.9% in the last year while the S&P 500 has fallen only about 1%. It has a median P/E this year of 23.5, which is the lowest median P/E in 6 years. However, in 2012, it traded as low as 17.2x. Sales are still expected to jump 20.2% in 2019, continuing its streak of 20% revenue growth. But do shares have to go lower for it to be a true bargain?

What else should you know about the FAANG stocks in 2019?

Find out on this week’s podcast.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="[In full disclosure, the author of this article owns shares of FB, AMZN and GOOGL in her own personal portfolio.]” data-reactid=”35″>[In full disclosure, the author of this article owns shares of FB, AMZN and GOOGL in her own personal portfolio.]

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.” data-reactid=”48″>Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.