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5 Top Value Stocks To Watch In February 2022

Value stocks have been the stronger performer this year, do you have these 5 on your list?

Are These The Best Value Stocks To Buy Right Now?

Value stocks are looking more like solid longer-term bets amidst the current volatility in the stock market. Don’t believe me, we only need to look at the recent estimates from Wall Street. And you will find that earnings growth for value companies is catching up to that of growth. As value stocks are time-tested and profitable, they could outperform their growth counterparts over the long run. If anything, many believe value stocks have a more attractive risk-reward profile. 

Assuming you’re keen on value investing, you could start by utilizing some of the screening tools from your brokerage. No discussion of stock prices would be complete without referencing the price-to-earnings (P/E) ratio. While a relatively low P/E ratio may indicate a buying opportunity, it’s important to note that no single metric can confirm that a potential investment is undervalued. In this article, let’s look at some of the best value stocks in the stock market today. 

Top Value Stocks To Watch In The Stock Market Today

Caterpillar

Heavy machinery giant Caterpillar is one of the top value stocks to watch right now. For starters, the company designs, develops, and manufactures a wide variety of products for the construction industry. Aside from that, it offers customers construction-related financial products and insurance solutions as well. Put together with its global network of operations, it is no wonder that Caterpillar is the world’s largest construction equipment manufacturer. 

What’s more, Caterpillar seems to be kicking into high gear across the board. The company posted solid figures in its latest quarterly earnings report last week. For the quarter, Caterpillar posted an earnings per share (EPS) of $2.69 on revenue of $13.8 billion, beating Wall Street’s forecasts. Notably, Caterpillar cites an ongoing surge in demand for construction equipment alongside rising commodity prices. Considering that the company is still generating sizable profits despite the supply chain pressures, would you include CAT stock on your watchlist right now?

Source: TradingView

[Read More] Top Dividend Stocks To Watch This Week

Honeywell

Similar to Caterpillar, Honeywell is one of the best industrial stocks you can find in the market. For those uninitiated, the company’s largest segment is aerospace. In essence, the company’s technologies help aircraft, buildings, manufacturing plants, and workers to be more connected to make the world smarter, safer, and more sustainable. Also, Honeywell Intelligrated offers one of the broadest portfolios of advanced automation technologies and software in the industry. 

Looking ahead, Honeywell’s aerospace segment is expected to grow over the long term even if the pace of the recovery is uneven due to the pandemic. While management hasn’t given formal guidance for 2022 yet, analysts are expecting an EPS of $8.97 and free cash flow of $6.03 billion for the company in 2022. Earlier this year, Honeywell announced a partnership with FREYR Battery (NYSE: FREY). In brief, Honeywell and FREYR intend to provide smart energy storage solutions to address the needs of commercial and industrial customers. Such decarbonized storage solutions help to make renewable energy more accessible and efficient. With these developments, would you buy HON stock ahead of its earnings later this week?

Source: TradingView

Bank of America

Bank of America is a multinational financial services company. In fact, it is one of the world’s leading financial institutions, serving individual consumers and small and middle-market businesses. Its services include a full range of banking, investment, asset management, and other financial and risk management products and services. Impressively, it serves approximately 66 million consumer and small business clients with over 4,000 retail financial centers and approximately 17,000 ATMs.

The company reported its fourth-quarter financials on January 19. Diving in, net income for the quarter rose to $7 billion, or $0.82 per diluted share. This reflects strong operating leverage as revenues grew faster than expenses. Revenue for the quarter was $22.1 billion, increasing by 10% year-over-year. A significant chunk of this quarter’s income was from its Consumer Banking segment, at $3.1 billion. This comes after deposit balances were up 16% to more than $1 trillion. Consumer investment assets were also up to $63 billion or 20% to a record $369 billion. Given its strong fundamentals, would BAC stock make your list of top value stocks to buy right now?

Source: TradingView

[Read More] 4 Consumer Staples Stocks To Watch For February 2022

International Business Machines

International Business Machines (IBM) is a company that provides integrated solutions and services worldwide. In detail, the company’s segments include Cloud & Cognitive Software, Global Business Services, Systems, and Global Financing. Its Cloud & Cognitive Software Solutions segment delivers integrated and secure cloud solutions to its clients. With the company’s presence in over 171 countries globally, IBM is without a doubt a tech titan in today’s world.

Similar to other Big Techs, IBM posted strong revenue growth in its latest quarterly report. For the quarter, the company posted an EPS of $3.35, topping Wall Street forecasts of $3.30. Additionally, the multinational computer hardware firm also raked in a total quarterly revenue of $16.70 billion. This marks a 6.5% revenue growth from the prior year quarter. More impressively, this is the company’s best sales growth in more than a decade. With the company continuing to focus more of its resources on hybrid cloud and artificial intelligence, would you bet on IBM stock in the stock market today?

Source: TradingView

Zoom Video Communications

Zoom Video Communications was one of the market’s favorite stocks during the onset of the pandemic. It’s no secret that the company’s video telephony and online chat services have exploded in popularity after the pandemic. For the upcoming fiscal fourth quarter, the company expects to chalk up revenue of around $1.05 billion, up 19% from the previous year quarter. Meanwhile, Zoom continues to release new features and updates for its platform in hopes to spur more revenue growth.

Just to be clear, Zoom’s growth surge at the start of the pandemic is tough to replicate. But with the stock dropping more than 70% from its all-time high, those who believe in the long-term potential of the company may be looking to buy the dip. Admittedly, investors may have some reservations about potential slowdowns in the company’s growth as the economy reopens. But with some companies delaying their plans to bring their employees back to office, many may continue to rely on services provided by Zoom. With all that in mind, would you be adding ZM stock to your portfolio?

Source: TradingView

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By Brandon Michael

Brandon Michael is a financial specialist and financial contributor to the stock market. He enjoys writing about rising stocks and how the market changes over time. He specializes in multimedia and events, as well as social media management and media contributing. He has managed and marketed hundreds of events, as well as grown social media pages upwards of 200,000 followers and everything in between. As an active social media influencer in the car community, he understands how to recognize trends and curate content for niches. From an early age, Brandon was fascinated by the power of social media and how it built companies and careers for many. Over time he has developed many different strategies for different platforms on how to grow different kinds of pages. In addition to social media skills, he is passionate about events, it is second nature to him to promote them and make sure that everything is executing perfectly. This has allowed him to partner with some of the largest companies in the industry to run events for hundreds of thousands of people. Brandon has written many articles for many notable top websites for the last 3 years. His focus in his writing is generally rising stocks and emerging trends in the stock market, as well as bringing companies with market potential to the frontlines of the media. It is easy for him to identify trends and do extensive research to make sure he’s providing the most accurate research possible. In his free time, he continues to improve his research skills and financial knowledge to continue providing the best work possible.

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