4 Value Stocks To Check Out In Mid-January 2022
The increasing volatility in the stock market has caused many investors to feel uneasy about their investments. Naturally, the idea of investing in value stocks will resurface as they offer more stability than growth stocks. For one, they are often established companies that appear to trade below their intrinsic value. Besides, some of the top value stocks tend to have the ability to weather through tough times.
Seeing the Federal Reserve is suggesting interest rates will rise quicker than some expected, many stocks have started selling off. Particularly, high growth companies with little or no profitability are getting hit the hardest. On the contrary, value stocks with stable underlying businesses are holding up relatively well. They may not post strong gains, but they can bring respectable returns over the long term.
For instance, Intel (NASDAQ: INTC) is a highly profitable company. Since Pat Gelsinger took over as CEO, the company is investing heavily to regain the edge in manufacturing capabilities. Should Intel’s investment pay off, it might be able to strengthen its position in the semiconductor industry. With top value stocks appearing to be leading the charge this year, investors may consider taking a more defensive approach. Considering the recent market sentiment, would you put up a list of top value stocks to buy in the stock market today?
Top Value Stocks To Watch Right Now
- Procter & Gamble (NYSE: PG)
- General Motors Company (NYSE: GM)
- Kulicke and Soffa Industries (NASDAQ: KLIC)
- FedEx Corporation (NYSE: FDX)
Procter & Gamble
First, we have Procter & Gamble (PG).In short, the consumer staples company serves customers around the world with its wide portfolio of everyday items. Currently, the company sells its products in over 180 countries and territories. From its shaving products Gillette to beauty products like Pantene, chances are you have something in your house that is made by PG. Over the past year, PG stock has risen by over 15%.
Earlier last week, reports said the company will be acquiring Tula Skincare, a probiotic, superfoods-based skincare company. The terms of the deal were not disclosed. Additionally, this is PG’s third acquisition in the past two months making it the company’s largest takeover among the three. In December, PG snapped up hair care brand Ouai. And in November, it bought Farmacy Beauty, a company that calls itself a “farm-to-face skincare” brand.
Putting all the pieces together, along with PG’s existing portfolio of SK-II and First Aid beauty, the company is significantly increasing its presence in the specialty and premium channels. Notably, PG is going head-to-head with rivals including The Estée Lauder Companies (NYSE: EL), Unilever (NYSE: UL), and L’Oréal. Seeing that PG is looking to grow its premium skincare segment, would you consider buying PG stock?
General Motors Company
Next up is General Motors, or GM for short. Recently, the automotive industry titan has been actively making the shift towards having a fully electrified portfolio. GM has committed itself to launching 30 new EVs by 2025, for every style and price point. For the most part, the company consists of global brands such as Chevrolet, Buick, GMC, and Cadillac to name a few. Also, GM stock has risen by nearly 20% over the past year.
On Tuesday, GM introduced CarBravo, a new app for used car purchases. This puts the company into direct competition with online used car dealers such as Carvana (NYSE: CVNA). In detail, CarBravo will be the company’s used vehicle shopping site which will link up with GM’s dealership network. On top of that, the new operation will cover local used inventories and GM’s national stock of used cars.
Besides featuring its own car brands, CarBravo will offer non-GM branded cars as well. This announcement came at a time where used cars are now a popular alternative to new vehicles amid record-high prices. Given this move by GM into the used car market, does GM stock deserve a spot on your watchlist?
Kulicke and Soffa Industries
Kulicke & Soffa Industries, or KLIC for short, is a leading provider of semiconductor packaging and electronic assembly solutions. In short, the company supports the global automotive, consumer, communications, computing, and industrial segments. In recent years, the company has expanded its product offerings through strategic acquisitions and organic development. Namely, these products include advanced packaging and wedge bonding to name a few. Last year, KLIC stock rose by over 50%.
Earlier last week, the company announced the launch of KNeXt at SEMICON Taiwan. KNeXt is a new web-based industry 4.0 software solution that leverages upon the company’s factory automation strength and existing installed base. This provides value-enhancing features such as factory dashboards with a fleet view and customizable software modules. Besides that, is the option to integrate a standalone software into a client’s existing manufacturing system and host software.
According to Meng Kwong Han, KLIC’s Vice President of Aftermarket Products & Services, “Industry 4.0 adoption is a continuous journey with increasing automation needs as semiconductor assembly becomes more complex. KNeXt™ is designed to serve different market segments by providing the most comprehensive solutions for K&S equipment, with flexibility to customize based on customer and application specific process flows. We are committed to the continuous development of industry 4.0 solutions through learning and partnership with our customers in their industry 4.0 journey.” On that note, would you consider investing in KLIC stock?
Summing up our list, we have FedEx Corporation. The company that needs no introduction specializes in transportation, e-commerce, and business services. FedEx operates a variety of segments. These include FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. Currently, the company’s supply chain consists of over 166,000 direct suppliers in the U.S itself. The likes of which work together to deliver over 19 million shipments a day worldwide.
Last month, the company reported their fiscal second-quarter earnings. Quarterly revenue was $23.5 billion, a 14% increase from the $20.6 billion the year prior. Moving on, it also reported an operating income of $1.6 billion, a 9% year-over-year increase from $1.47 billion. Finally, diluted earnings per share (EPS) were $4.83, exceeding Wall Street expectations of $4.28. Overall, FedEx explained that its quarterly operating income saw gains due to higher revenue per shipment across all its transportation segments.
Earlier this month, FedEx signed an agreement with electric van manufacturer BrightDrop. In brief, FedEx is reserving priority production for 2,000 electric delivery vans over the next few years. This adds to FedEx’s initial reservation of 500 BrightDrop EVs. With this, the company remains full speed ahead in its plans to electrify its delivery vehicle fleet. With all this in mind, does FDX stock deserve a spot on your watchlist?
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