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5 Ten-Year Value Superstars

Didn't buy Tesla? Investors still outperformed the S&P 500 in these value stocks.

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This story originally appeared on Zacks

- Zacks
  • (0:45) - Value Stocks To Hold For A 10 Year Period
  • (4:30) - Tracey’s Top Stock Picks
  • (16:00) - Episode Roundup: UNH, UNP, HD, ROST, COST, JPM
  •                 Podcast@Zacks.com

 

Welcome to Episode #256 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.

But in Oct 2021, value investors were feeling a bit demoralized after Tesla busted out yet another new all-time high.

Shares have gained over 26,000% in the last ten years, but now trade with a forward P/E of 172.

For most value investors, investing in Tesla is a non-starter. It’s fundamentals don’t match up with the price.

But value investors don’t have to settle for subpar returns either.

Over the last 10 years, there have been value stocks that have outperformed the S&P 500 and even, in some cases, outperformed the NASDAQ 100.

That hasn’t been easy to do, as the S&P 500 has gained 243.7% and the QQQ is up 471.9% in the last decade.

What are these amazing stocks?

5 Ten-Year Value Superstars

1.       UnitedHealth Group UNH, the health insurer, was trading at just 10x earnings in 2011 so it was cheap. How much would an investor have made if they had dove into the shares just after the Affordable Care Act passed?

2.       Union Pacific UNP, which was founded in 1862, is still relevant all these years later as transportation and logistics remains center stage in the economy. In 2011, UNP traded with a median forward P/E of 15.6. Who knew investing in railroads could be this good?  

3.       Home Depot HD, the home renovation retailer, was trading with a median forward P/E of 16 in 2011, as the economy was coming out of the Great Recession. How many times have you been to their stores?

4.       Ross Stores ROST, the discount retailer, was trading with a forward P/E of 16 in 2011. It’s been a great performer over the last 10 years but have you ever heard it mentioned on Stocktwits or on CNBC? 

5.       JPMorgan Chase JPM is a surprise on this list. In 2011, it was one of the few big bank survivors of the financial crisis. It traded with a median dirt-cheap forward P/E of just 7.3. How did shares manage to beat the S&P 500 over the last decade? 

What else do you need to know about these value superstars?

Tune into this week’s podcast to find out how great their performance was in the last decade.



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 >>



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

 

JPMorgan Chase & Co. (JPM): Free Stock Analysis Report

 

UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report

 

Union Pacific Corporation (UNP): Free Stock Analysis Report

 

The Home Depot, Inc. (HD): Free Stock Analysis Report

 

Ross Stores, Inc. (ROST): Free Stock Analysis Report

 

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Zacks Investment Research