Value stocks have now lagged growth for more than a decade – an excruciatingly long stretch for value investors. And while the value premium has disappeared for extended periods of time before only to ultimately reappear, there is talk now that this time it may be gone for good. Is this time truly different for value? The author of today’s article examines the theories suggesting its demise – and the prospects for its return. For more, CLICK HERE.
A “rare phenomenon brewing in the stock market right now” may be setting up a “once in a decade” opportunity, according to a JPMorgan quantitative strategist. More specifically, this opportunity stems from the record level of divergence between stock groups (value/cyclical stocks and low volatility/defensive stocks) – a level that the analysts declares “is much more significant even when compared to the dot-com bubble valuations of late ’90s.” For more, CLICK HERE.
When the stock market is viewed as a singular entity, rather than as a market made up of individual stocks, babies (quality stocks) can get thrown out with the bathwater (selling action) during periods of volatility – and this provides an opportunity for value investors. Today’s article highlights four such value prospects – stocks that the author notes had “fine earnings reports but sold off anyway. These companies are all trading at a significant discount to their long-term averages with forward-looking growth expectations in-line with historical performance, signaling an irrational gap in pricing.” For these four stocks, CLICK HERE.
Low-priced stocks are appealing for two reasons, notes the author of today’s article: “One reason is that the low price means they have little down side risk in dollar terms. The second reason is that low priced stocks are generally the ones that deliver the largest short term gains.” The six low-priced (trading under $5) stocks the author proceeds to highlight have an additional appealing feature: they all pay dividends that can tide investors over while they wait for share prices to (hopefully) appreciate. For these six cheap income stocks, CLICK HERE.
Each of the five stocks highlighted in today’s article is currently trading at less than book value, has earnings, pays a dividend and, the author notes, “these companies are well outside the Facebook/Apple/Netflix/Google arena that presently captivates most of the business media and many investment house analysts.” For these five stocks that may be worthy of further consideration – including an insurance company, a business development company and a Greece-based shipping company – CLICK HERE.
Growth? Value? Size? When it comes to investing in factors, the author of today’s article acknowledges that “trying to determine which ones to invest in at a given time is an incredibly difficult undertaking.” He proceeds to examine which factors have outperformed historically at similar points in the market cycle to where we (presumably) are now: the late stages. What two factors have consistently been late-stage performers – and what factor is singled out as “the best of factors in the worst of times”? CLICK HERE.
Whether 2018 brings a continuation of good times for the stock market – or proves to be the year in which the almost nine-year old bull market comes to an end – there are certain seemingly appealing stocks that investors may want to avoid. Today’s article shines a light on eight such stocks (as identified by top investment advisors), noting that “some of them appear to be value stocks, but their flawed fundamentals argue otherwise, while others have already enjoyed spectacular gains but now trade at excessive valuations.” For more, CLICK HERE
Traditional ‘brick-and mortar’ retailers have been falling victim to the beast that is Amazon. However, some areas of the retail sector are viewed as being more insulated from Amazon – including discount retailers. One discount retailer in particular that investors may want to have on their radar is Big Lots. Today’s article looks at why Big Lots may be one of the best retail stocks to own – regardless of whether the retail sector stages a recovery or continues to struggle. To read more, CLICK HERE.
With the average age of light truck/SUV vehicles on U.S. roads being about 6 years, the author of today’s article notes that, “eventually, tens of millions of tires will need to be replaced to the tune of $800 to $1,400 a set” – and to profit from this development, he recommends a “middle of the pack” play – the number five tire manufacturer in North America. What is this stock – and what two features does the author believe make it an especially attractive pick? CLICK HERE to find out.
In attempting to identify value stocks with the most return or turnaround potential in 2017, the author of today’s article employed the Piotroski F-score strategy, which “improves realized returns and undercuts tail risks by picking financially stronger firms within a portfolio of low price-to-book stocks.” To find out which three value stocks the author sees as having the biggest turnaround potential this year – an aircraft leasing company, a luxury and upper-upscale hotel REIT and an owner of racing facilities/promoter of motorsports activities – and why, CLICK HERE.