Do You Have These Value Stocks On Your Watchlist Right Now?
Everyone wants more for less, and an investment in the stock market is no exception. In recent weeks, many growth stocks and blue-chip companies have seen their stock prices start to nosedive. For instance, MercadoLibre (NASDAQ: MELI) is trading at over 40% lower from its all-time high. If anything, when performing companies go on sale for whatever short to medium-term reasons, like a panic selloff, it presents an opportunity to buy at discounts.
With inflation accelerating at its fastest pace since 1982 in November, at 6.8% year-over-year, could value stocks be worth paying attention to right now? After all, value stocks tend to perform better than growth stocks in high inflation periods. Of course, value stocks may not have flashy characteristics or be as exciting as their hyper-growth counterparts. But since they are trading at a discount to their intrinsic value, they could outperform the stock market over time.
For starters, value stocks are usually highly established companies that tend to trade at lower prices relative to their fundamentals, such as earnings and sales. For instance, companies with lower price/earnings (P/E) ratios are often considered to be value stocks. Take General Motors (NYSE: GM), with a P/E ratio of 8. The company has announced that it will be shifting its portfolio of vehicles to an all-electric future by 2025. Given that demand for EVs has only just begun and continues to increase every year, GM could be considered a value stock for the long run. Also, considering the uncertainty around the Omicron variant, it’s not surprising that some investors are starting to look for the best value stocks to buy. If you share the same sentiment, here are four for you to add to your watchlist.
Best Value Stocks To Watch Right Now
- Teladoc Health Inc. (NYSE: TDOC)
- Pinterest Inc. (NYSE: PINS)
- Fiverr International Ltd. (NYSE: FVRR)
- Kraft Heinz Co. (NASDAQ: KHC)
Teladoc Health is a pioneer in the telemedicine and virtual healthcare industry. The company’s products focus on holistic virtual medical care, which includes physical as well as mental health services. Hailing as one of the biggest pandemic winners, the company is now seeing its value down by around 70% from its all-time high. Investors may be wondering if the sell-off is over. Could this be an opportunity to buy on dips?
From its latest quarter, Teladoc reported an 81% year-over-year increase in revenue to $522 million. On an organic basis, the company managed to increase its revenue by 32%. What’s more, a recent survey from Piper Sandler found that 82% of consumers believe that telehealth is just as good or better than in-person health care.
“Our strong performance in the third quarter reflects our continued success in leading the transformation of healthcare delivery and expanding access for all,” said Jason Gorevic, chief executive officer at Teladoc Health. Gorevic also said that the company is driving growth across its business. It does this by leveraging data, analytics, technology, and dedicated health care professionals. With no end in sight to the Covid-19 pandemic, is TDOC stock worth watching today?
Pandemic darling Pinterest was one of the top growth stocks to buy in the stock market. Many scrambled to get a piece of PINS stock at the high of the pandemic. Of course, with many countries starting to push ahead with the reopening of their economies, investors are concerned that this would hamper the company’s growth.
Pinterest reported $632.9 million in revenue from its third fiscal quarter results, up by 43% year-over-year. The company however noted a decrease in active users as the pandemic restrictions eased. Recently, the company introduced the new Pinner products and experiences globally. This shows its commitment to continuously strive to provide enhanced experiences for its users. In addition to that, Pinterest is also rolling out its first monetization program for creators, called Creator Rewards. With that in mind, would you consider PINS stock as a top value stock to buy right now?
Fiverr International is a platform that allows freelancers to offer services to customers around the world. Last year, the pandemic drove many workers to explore freelance jobs. And that made Fiverr stock popular with investors and its share price skyrocketed 730% in 2020. As high-flying Fiverr got humbled, the share price tumbled as well. Since peaking in February this year, Fiverr stock has fallen more than 50% to date. Now, the stock is trading at a more reasonable valuation and some investors are wondering if it is a good time to invest. However, many may still believe that Fiverr stock will falter once the pandemic is over.
But what some of us may not know is that the freelance economy is expected to grow at 15.3% per year through 2026, according to Orbis Research. Fiverr’s third fiscal quarter results did shed some light on the freelancing market. For the quarter, the company reported $74.3 million in revenue, an increase of almost 42% year-over-year. Besides, active buyers grew by 33% year-over-year to 4.1 million as of September 30 this year. As freelancing becomes more common, should you place your bet on FVRR stock?
Food company Kraft Heinz is easily one of the value buys for many investors. This would also include the Oracle of Omaha, Warren Buffett. A big part of the reason why Kraft makes a top-value stock is its relatively low valuation and positive earnings profile. What’s more, Kraft came out with a solid earnings beat in its most recent quarter. The strong performance could serve as a reminder to investors of the resilience that the company has, even in such challenging times. It also doesn’t hurt that big-box retailer Walmart (NYSE: WMT) is its largest customer.
Apart from its attractive valuation, the company also pays a high dividend yield of 4.78%. So, where does this leave prospective investors now? But if the current dividend yield doesn’t intrigue value investors, what will? If anything, it looks to me that Kraft stock can be an excellent choice for investors who are focused on both value and dividends. Considering its recent downturn, do you have KHC stock on your watchlist?
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