Should You Sell Your FANGMAN Stocks?
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This week, Tracey is joined by Zacks Senior Strategist, Kevin Cook, to discuss their favorite topic: what should investors do as stocks sell-off?
Should you sell? Or add further to your positions?
What do you do with growth stocks? Do you sell your FANGMAN stocks, which are down anywhere from 10% to 50% from their highs?
Or do you do…nothing?
Exxon’s Market Cap Overtakes Meta Platforms
This year, for the first time in 5 years, ExxonMobil’s (XOM - Free Report) market cap has exceeded Meta Platforms (META - Free Report), one of the FANGMAN stocks.
Meta Platforms shares have fallen 18.5% over the last 5 years as shares have plunged this year.
But ExxonMobil shares are now up 16% over the last 5 years after gaining 56% this year.
ExxonMobil has been a value stock for years. Meta Platforms was a growth stock, often listed among the top stocks as one of the “FANGMANs.”
Is the tide turning in favor of value?
What’s Working and What’s Not
In addition to energy, investors have been fleeing to healthcare stocks for safety. Should you follow?
And they have been selling the big tech names, especially the semiconductors. Are the semi-stocks oversold?
1. UnitedHealth Group (UNH - Free Report)
UnitedHealth Group has been holding up during the 2022 sell-off. Shares are up 4.2% year-to-date while the S&P 500 is down 22.8%.
Over the last 5 years, UnitedHealth Group shares are up 164% compared to just 48.7% for the S&P 500.
UnitedHealth Group isn’t cheap. It trades with a forward P/E of 23.6.
It also pays a dividend, but it is only yielding 1.3%.
Is it too late to hide out in UnitedHealth Group?
2. Biogen (BIIB - Free Report)
Biogen shares popped 37% recently after it announced its Alzheimer’s drug reduced cognitive decline by 27% compared to the placebo.
Shares of Biogen are up 11.5% year-to-date.
Biogen isn’t that expensive, with a forward P/E of 16.1. It does not, however, pay a dividend.
Should investors be buying Biogen after the big pop?
3. NVIDIA (NVDA - Free Report)
NVIDIA is one of the big winners of the “FANGMAN” stocks. Over the last 5 years, NVIDIA has gained 190%.
But NVIDIA shares have taken a big dive in 2022, falling 55.2%.
Shares of NVIDIA are still expensive at 35x. It now has a Zacks Rank of 5 (Strong Sell).
NVIDIA has been one of Kevin’s favorite stocks. Is he buying it here on weakness?
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