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Zacks Value Trader Highlights: Novavax, J.C. Penney, Pier 1 Imports, Tilray And Aurora Cannabis

Published 04/24/2019, 09:39 PM
Updated 07/09/2023, 06:31 AM
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For Immediate Release

Chicago, IL – April 25, 2019 – Zacks Value Trader is a podcast hosted weekly by Zacks 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:

https://www.zacks.com/stock/news/397719/should-you-buy-lottery-stocks

Should You Buy Lottery Stocks?

Welcome to Episode #174 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.

In this episode, Tracey is joined by Zacks Account Manager Niko Yokosawa and Zacks Product Manager Derek Kaplan, to discuss the interesting phenomena of “lottery stocks.”

What’s a Lottery Stock?

A lottery stock is a stock where if a particular event happens, the shares will either soar or crash back down to earth.

It’s an all-or-nothing type bet. Just like the lottery.

Can you play the lottery to only kind-of win? Of course not. That’s true of lottery stocks too. Investors have to be prepared to lose everything.

And while the odds may be against you when playing the lottery, you keep playing because of the dream of winning.

That’s true of lottery stocks as well. The dream of a big “win” is what drives investors.

Where Can You Find Lottery Stocks?

Often, lottery stocks are in the biotechs and drug stocks.

Tracey shares her tale of investing in Novavax (NASDAQ:NVAX) , a drug company trying to bring an RSV vaccine to the market.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Novavax went to Phase III twice on its RSV vaccine. What could go wrong?

But lottery stocks can also be found in the beaten down retailers such as J.C. Penney (NYSE:JCP) , which is trading around $1.30, and Pier 1 Imports, Inc. (NYSE:PIR) which has sunk under $0.50 after another dreary earnings report.

Are Pot Stocks Lottery Stocks?

Lottery stocks are synonymous with a big payoff. For that reason, they are also risky.

Could the pot stocks be lottery stocks too?

Tilray (NASDAQ:TLRY) was up as much as 400% at one point, with many talking about a pot stock bubble, before pulling back.

Aurora Cannabis (TO:ACB) is another hot cannabis stock that went from $2 to $9.

Neither one has positive earnings yet.

What else should you know about the lure of the lottery stocks?

Listen to this week’s podcast to find out.

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https://www.zacks.com/performance

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.



Novavax, Inc. (NVAX): Free Stock Analysis Report

Pier 1 Imports, Inc. (PIR): Free Stock Analysis Report

J. C. Penney Company, Inc. (JCP): Free Stock Analysis Report

Tilray, Inc. (TLRY): Free Stock Analysis Report

Aurora Cannabis Inc. (ACB): Free Stock Analysis Report

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