• (1:00) - Finding Strong Stocks That Are Currently On Sale
• (5:15) - Tracey’s Top Picks For Your Watchlist Right Now
• (35:30) - Episode Roundup: PHM, ANF, HVT, LLY, AMN
•             Podcast@Zacks.com

Welcome to Episode #392 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.

Not all stocks finished the year in outstanding fashion. Some stocks sold off after the election in November 2024 and have not yet recovered. Some are down as much as 20%, or more, in just the last 3 months.

But you know what that means. It could be a buying opportunity. But are these stocks values or traps?

How to Tell the Difference Between a Value or a Trap

Lots of stocks can look cheap, especially after a sell-off. They may even have a low price-to-earnings (P/E) ratio. But that doesn’t mean the stock is a “value.”

Investors should look at the earnings outlook. Are earnings rising? Is there earnings growth year over year?

That will tell you whether it’s a true value or a trap.

5 Stocks on Sale: Values or Traps?

1. PulteGroup, Inc. (PHM)

PulteGroup is one of the largest publicly traded homebuilders in the United States. As mortgage rates have risen back over 7%, shares of PulteGroup have fallen. It is down 20.1% over the last 3 months.

PulteGroup is cheap with a forward P/E of 8.4. It reports earnings on Jan 30, 2025.

Is PulteGroup a value or a trap?

2. Abercrombie & Fitch Co. (ANF)

Abercrombie & Fitch is a hot specialty retailer. But when the company gave a recent business update on the fourth quarter, Wall Street wasn’t impressed. Shares are down 18.7% in the last 3 months.

Abercrombie & Fitch is cheap. It has a forward P/E of 12.4.

Is Abercrombie & Fitch a value or a trap?

3. Haverty Furniture Companies, Inc. (HVT)

Haverty is a furniture retailer in the Southeastern United States. With housing sales lagging, the shares of Haverty have been too. It is down 14.2% over the last 3 months.

Yet Haverty is cheap. It trades with a forward P/E of just 11.8. It also pays a dividend, currently yielding 5.8%.

Is Haverty a value or a trap?

4. Eli Lilly & Co. (LLY)

Eli Lilly was red hot the last 2 years due to its popular weight loss drugs. But, over the last 3 months, shares of Eli Lilly have fallen 18.3%.

While not a value stock by its forward P/E, which is 31, that is much cheaper than Eli Lilly was trading at a year ago.

Is Eli Lilly a value or a trap after this big pullback?

5. AMN Healthcare Services, Inc. (AMN)

AMN Healthcare Services is in medical staffing, especially of nurses. Business boomed during the pandemic as demand for medical staffing soared.

The shares of AMN Healthcare have fallen to new 5-year lows and are down 36.8% in the last 3 months. It trades with a forward P/E of 18.3.

Is AMN Healthcare a value or a trap?

What Else Should You Know about Values and Traps?

Tune into this week’s podcast to find out.

[In full disclosure, Tracey owns shares of LLY and ANF in her personal portfolio and shares of PHM in Zacks Value Investor.]

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

Eli Lilly and Company (LLY) : Free Stock Analysis Report

Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report

PulteGroup, Inc. (PHM) : Free Stock Analysis Report

AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report

Haverty Furniture Companies, Inc. (HVT) : Free Stock Analysis Report

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