How To Thrive In A Stock Market Sell-Off
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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 talk about how you can not only survive but thrive, during the 2022 stock market sell-off.
Tip #1: Have a Plan
Having a plan is the most important thing investors, and even traders can do. During a market sell-off, it can give an investor a sense of control.
Tip #2: Be Diverse
Many of us are likely overweighted in the big cap growth stocks after a decade of outperformance. And while the major indexes are off their highs, some small cap stocks, and those in the value and income strategies, haven’t seen as much weakness.
Having exposure to multiple capsizes and investing styles can help reduce volatility.
Screening for the Best Zacks Stocks
There’s always a bull market somewhere even in a big market sell-off.
Zacks has two stock screening tools: the Zacks Rank, which is a short-term recommendation based on changes to analyst earnings estimates, and the Zacks Style Scores, which ranks stocks based on Value, Growth, and Momentum criteria.
If you combine both into a single screen and look for the top scores of #1 Rank (Strong Buy) and an Aggregate Style Score, which combines Value, Growth and Momentum, of A, you have a powerful screen.
This returned just 35 stocks.
5 Top Zacks Stocks with #1 Ranks and Style Scores of A
1. AutoNation (AN - Free Report)
AutoNation was supposed to have “peak” earnings in 2021. After all, everyone who needed a car has already bought one, right?
But AutoNation is now expected to grow 2022 earnings by 21%.
Shares are up just 5.4% year-to-date while earnings estimates are on the rise.
AutoNation is dirt cheap, with a forward P/E of just 5.4.
Is it time to get into the auto retail stocks?
2. ConocoPhillips (COP - Free Report)
ConocoPhillips is an independent oil and natural gas company. It is reporting earnings this week but it already has the Zacks #1 Rank.
Energy has been a big winner this year. Shares of ConocoPhillips are up 37% year-to-date.
But ConocoPhillips is still a value. It trades with a forward P/E of just 6.7.
After a big 1-year rally, is it too late to buy ConocoPhillips?
3. Huntsman Corp. (HUN - Free Report)
Huntsman shares are down 1% year-to-date but is still beating the S&P 500 which has fallen 12% during the same time.
Huntsman is expected to grow earnings by 20% this year, with analysts raising estimates in the last week.
Shares are cheap, with a forward P/E of 7.9. Huntsman also pays a dividend, yielding 2.5%.
Should Huntsman be on your shortlist?
4. Ryder System (R - Free Report)
Ryder System is a logistics and transportation company. It recently reported earnings and beat and raised full-year guidance. How many companies, facing inflationary pressures, are able to raise guidance?
Earnings are expected to rise 40% this year.
Ryder System shares are still down 13% year-to-date, even with the earnings beat.
They are dirt cheap, with a forward P/E of 5.2.
Is Ryder System a steal?
5. MarineMax (HZO - Free Report)
MarineMax, the world’s largest recreational boat and yacht retailer, recently reported its fiscal second-quarter results and beat and then raised full-year earnings guidance.
Earnings are expected to rise 22% in Fiscal 2022.
It was a record quarter with revenue up 17% to $610 million.
But the Street has been ignoring shares of MarineMax. They’ve fallen 28% year-to-date, even with the earnings beat and raise.
MarineMax is also dirt cheap. It trades with a forward P/E of 5.
Should MarineMax be on your shortlist?
Disclaimer: Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the more