For Immediate Release
Chicago, IL â April 25, 2019 â 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 âlottery stocks.â
Whatâs 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.
Itâs an all-or-nothing type bet. Just like the lottery.
Can you play the lottery to only kind-of win? Of course not. Thatâs 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.
Thatâs true of lottery stocks as well. The dream of a big âwinâ 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 NVAX, a drug company trying to bring an RSV vaccine to the market.
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 JCP, which is trading around $1.30, and Pier 1 Imports, Inc. 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 TLRY was up as much as 400% at one point, with many talking about a pot stock bubble, before pulling back.
Aurora Cannabis 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 weekâs podcast to find out.
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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.
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report
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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