5 Value Stocks To Watch Right Now
In the past few months, many investors have seen declines in their portfolios. With the stock market remaining volatile thanks to a number of headwinds, investors are hoping for better days to come. In the meantime, investors could be considering value stocks in the stock market today. For those unfamiliar, value stocks are typically well-established companies whose stock prices appear to trade below their intrinsic value. These stocks may also offer more stability and have the ability to weather through tough times.
As such, investors could be taking note of Tyson Foods (NYSE: TSN). The food processing company recently posted its second-quarter financials with total sales increasing by 15.9% and earnings per share jumping by 75% year-over-year. Another value stock to watch might be Honeywell (NASDAQ: HON). Earlier in the month, the industrial company introduced the Honeywell Forge Connected Warehouse. Put simply, this will bring a scalable and cloud-based solution to help distribution centers accelerate their productivity and transformation strategies. With that being said, here are five value stocks worth checking out in the stock market today.
Value Stocks To Buy [Or Avoid] Right Now
- Citigroup Inc. (NYSE: C)
- Caterpillar Inc. (NYSE: CAT)
- The Kraft Heinz Company (NASDAQ: KHC)
- General Motors Company (NYSE: GM)
- The Procter & Gamble Company (NYSE: PG)
Citigroup, otherwise known as Citi, is a company that provides financial services and also investment banking. In fact, it is one of the Big Four banking institutions in the U.S. In essence, it has five core interconnected businesses across Services, Markets, Banking, Global Wealth Management, and U.S. Personal Banking. Its Banking segment, for instance, focuses on high-returning, capital-light Investments. Upon the following news, I could see why investors may be watching C stock.
Last week, famed value investor Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) revealed a $3 billion stake in Citi. The banking company has been down by about 20% since the start of the year. With Buffett ‘blessing’ it, Citi might finally attract some buying interest in the near future. At the moment, the company is undergoing an overhaul led by CEO Jane Fraser to fix its risk and compliance systems. As such, some may consider Berkshire’s investment as a validation to Fraser as an effective financial architect. As such, will you be watching C stock?
Following that, we have Caterpillar. For those unaware, the company is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. As a matter of fact, it is the world’s largest construction-equipment manufacturer. Whether it be hospitals, schools, roads, or bridges, many companies around the world leverage Caterpillar’s products to enable higher standards of living.
Earlier this month, Caterpillar announced that it has acquired Tangent Energy Solutions, an energy-as-a-service (EaaS) company for an undisclosed sum. For the most part, Tangent offers its clients turnkey solutions to lower energy costs, boost energy efficiency, and monetize electric grid support. On top of that, its software solutions are capable of monitoring patterns from grid and client facilities and analyzing opportunities in energy markets. All of which could lead to maximizing returns without disrupting normal business operations. Moving ahead, Tangent will continue to offer services under its brand and operate under Caterpillar’s Electric Power Division. Given the acquisition, is CAT stock a buy?
Another value stock to watch would be Kraft Heinz (KHC). In detail, the company manufactures and markets products such as condiments, dairy, meats, coffee, and other grocery products throughout the world. Its product portfolio includes notable brands such as Kraft, Heinz, Velveeta, Jell-O, Grey Poupon, and Philadelphia to name a few. For a sense of scale, the company is one of the largest food and beverage companies in North America.
Towards the end of last month, KHC posted its first-quarter 2022 results. In brief, net sales for the quarter came in at $6 billion, with organic net sales increasing by 6.8% year-over-year. The company also posted non-GAAP earnings per share of $0.60, beating estimates by $0.07. In the same earnings report, KHC raised its guidance for 2022 organic net sales to a mid-single-digit percentage. This is thanks to strong performance to date and ongoing business momentum. All in all, should investors be on the lookout for KHC stock?
Following that, we will be taking a look at General Motors, or GM, for short. As most would know, GM is one of the largest automotive manufacturers in the world. Like most of its industry peers, GM is steadily focusing on electrifying its current portfolio. Notably, it aims to do so via its Ultium battery platform, a core component of the GM EV strategy now. Earlier this month, the company showcased its plans to open at least four new plants solely to manufacture batteries for its own EVs.
“We decided that we wanted to have control over battery cell manufacture so we formed a joint venture with LG, one of our partners, and we now have a plant coming online this year in Ohio, another one coming online next year, the following year, and one after that,” said CEO Mary Barra. This collaboration with LG Energy Solution, called Ultium Cells, aims to power more GM vehicles in the years ahead. Considering GM’s plans, will you buy GM stock?
Procter & Gamble
Last, but not least, is Procter & Gamble (PG). In short, the company focuses on providing branded consumer packaged goods to consumers across the world. PG operates through five segments: Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care. Under these segments are brands such as Head & Shoulders, Herbal Essences, SK-II, Oral-B, Downy, and many more.
Last month, PG reported its fiscal third-quarter earnings report. Diving in, the company posted net sales of $19.4 billion, an increase of 7% year-over-year. As for its profits, diluted net earnings per share came in at $1.33, up by 6% compared to the prior year’s quarter. Safe to say, this is yet another strong quarter for PG with strong sales across the board despite cost headwinds. Considering PG’s performance, should you invest in PG stock?