Back to top

Image: Bigstock

5 Value Stocks to Buy as Markets Set New Records

Read MoreHide Full Article

The idea of ‘value investing’ is simple – betting on stocks which are undervalued, i.e. have market value lower than its ‘fundamental value’ or ‘intrinsic value’ based on the investment horizon. However, determining a stock’s intrinsic value is no mean feat. Recognizing an undervalued stock is more intuitive than scientific. An investor needs to use the right tools and metrics to select such stocks. Further, in a scenario where the market is scaling new highs on the back of rising oil prices, it is complicated to predict the fundamental value of any security at this moment.

After identifying the right stocks, sifting out the best from the lot is of utmost importance. An investor should not focus on a particular sector and must look to diversify his holdings across various industries. Meanwhile, choosing the most lucrative of sectors is again a daunting task. This is where our proven Zacks Rank system can help an investor identify the right stocks and choose the profitable industries.

Using our quantitative and qualitative tools, viz the popular Zacks Rank #1 stocks and Value Style score of ‘A’, we have picked five value stocks which you may consider adding to the portfolio. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Best Buy Co., Inc. (BBY - Free Report) operates in a single business segment, selling personal computers and other home and office products, principally through its retail stores. The company is trading at a forward P/E of 14.91 for $48.66 a share.

Dean Foods Company is a leading processor and distributor of fresh milk and other dairy products in the U.S. and a leader in the specialty foods industry. Priced at $21.52 per share, the company is currently trading at a forward P/E of 12.91.

The Liberty Media Group is engaged in media, communications and entertainment businesses through its subsidiaries and investments in publicly-traded companies. The company is trading at a forward P/E of 10.53 for $30.95 a share.

Ocean Rig UDW LLC is engaged in providing offshore drilling services to oil and gas exploration, development and production drilling industry. Priced at $2.51 per share, the company is currently trading at a forward P/E of 0.61.

Braskem S.A. (BAK - Free Report) has the largest petrochemical operations in Latin America and is among the five large private companies in Brazil. The company is trading at a forward P/E of 5.8 for $19.83 a share.

Zacks' Best Investment Ideas for Long-Term Profit

Today you can gain access to long-term trades with double and triple-digit profit potential rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this private information? Click here >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Best Buy Co., Inc. (BBY) - free report >>

Braskem S.A. (BAK) - free report >>

Published in