The stocks of well-established companies that are trading at a price below what they are worth are called value stocks. Such stocks hold substantial potential for superior returns in the future. For instance, if according to analysts’ calculations, the share of a company is worth $25, and it is trading at $20 due to certain public perceptions; it becomes a value stock.
Value stocks are considered to be more stable and less risky because they belong to stable and established companies. The fundamentals of the company, including the revenues, margins, and growth potential, are solid. The low price provides an attractive entry point for investors to take part in the future value of the company and the stock.
Ticker | Company Name | Last Price | 1-Year Return | Market Cap |
|---|---|---|---|---|
| SWKS | Skyworks Solutions, Inc. | $163.13 | 39.57% | 27.1B |
| BIO | Bio-Rad Laboratories, Inc. | $570.76 | 56.23% | 17.0B |
| COG | Cabot Oil & Gas Corporation | $18.39 | 27.53% | 7.3B |
| EXEL | Exelixis, Inc. | $22.46 | 26.61% | 7.0B |
| WEN | The Wendy's Company | $21.07 | -4.49% | 4.7B |
| SHO | Sunstone Hotel Investors, Inc. | $10.52 | -18.83% | 2.3B |
| CRS | Carpenter Technology Corporation | $34.75 | -18.92% | 1.7B |
| VSH | Vishay Intertechnology, Inc. | $22.83 | 8.71% | 3.0B |
| KFY | Korn Ferry | $48.14 | 13.81% | 2.6B |
| LGND | Ligand Pharmaceuticals Incorporated | $156.86 | 81.26% | 2.5B |
| BMCH | BMC Stock Holdings, Inc. | #N/A | #N/A | #N/A |
| GTN | Gray Television, Inc. | $17.84 | -16.64% | 1.7B |
| BPMP | BP Midstream Partners LP | $12.96 | -14.17% | 1.4B |
| FORM | FormFactor, Inc. | $46.35 | 78.20% | 3.6B |
| SUPN | Supernus Pharmaceuticals, Inc. | $31.20 | 33.05% | 1.6B |
| ATKR | Atkore International Group Inc. | $46.10 | 14.51% | 2.2B |
| MEI | Methode Electronics, Inc. | $39.96 | 11.28% | 1.5B |
| KEM | KEMET Corporation | $14.16 | 4.89% | 2.2B |
| INVA | Innoviva, Inc. | $12.51 | -10.13% | 1.3B |
| IMKTA | Ingles Markets, Incorporated | $45.83 | 5.14% | 651.4M |
| WLKP | Westlake Chemical Partners LP | $23.74 | -0.34% | 835.5M |
| SCSC | ScanSource, Inc. | $25.20 | -27.63% | 640.4M |
| CONN | Conn's, Inc. | $13.78 | 55.71% | 402.4M |
| VHI | Valhi, Inc. | $16.61 | -17.61% | 469.6M |
| SOI | Solaris Oilfield Infrastructure, Inc. | $9.68 | -19.80% | 438.8M |
| BOOM | DMC Global Inc. | $50.38 | 20.38% | 744.3M |
| JOUT | Johnson Outdoors Inc. | $111.23 | 47.85% | 1.1B |
| SCHN | Schnitzer Steel Industries, Inc. | $29.95 | 71.14% | 822.2M |
| MOV | Movado Group, Inc. | $21.07 | 15.14% | 488.7M |
| PKOH | Park-Ohio Holdings Corp. | $29.57 | -6.31% | 373.1M |
| RYI | Ryerson Holding Corporation | $12.82 | 22.56% | 488.7M |
| NWPX | Northwest Pipe Company | $30.82 | -8.79% | 302.2M |
| CMLS | Cumulus Media Inc. | $9.38 | -33.71% | 190.9M |
| HOFT | Hooker Furniture Corporation | $32.22 | 30.98% | 383.0M |
| PDLI | PDL BioPharma, Inc. | #N/A | #N/A | #N/A |
| FTSI | FTS International, Inc. | $17.13 | 24.31% | 234.5M |
| CVGI | Commercial Vehicle Group, Inc. | $8.38 | 58.71% | 271.7M |
| BGSF | BG Staffing, Inc. | $13.04 | -37.25% | 134.5M |
| AMSC | American Superconductor Corporation | $28.50 | 276.98% | 786.7M |
| ZEUS | Olympic Steel, Inc. | $15.25 | 4.17% | 168.9M |
| ULBI | Ultralife Corporation | $6.54 | -5.22% | 104.2M |
| HROW | Harrow Health, Inc. | $8.71 | 31.57% | 224.2M |
| HWCC | Houston Wire & Cable Company | $3.51 | -16.43% | 58.1M |
| SSKN | STRATA Skin Sciences, Inc. | $1.78 | -7.77% | 60.1M |
| NTWK | NetSol Technologies, Inc. | $4.62 | 5.00% | 53.8M |
| PMD | Psychemedics Corporation | $7.44 | -22.26% | 41.1M |
| RCMT | RCM Technologies, Inc. | $2.67 | -3.26% | 31.9M |
| ISNS | Image Sensing Systems, Inc. | $4.62 | -15.23% | 24.7M |
| THST | Truett-Hurst, Inc. | $0.48 | #N/A | 1.8M |
Factors to Consider Before Investing in Value Stocks
Investors must consider their time horizon, volatility, and risk appetite before investing in value stocks. Value stocks originate from robust foundations and are, therefore, less volatile, less risky, and more value-creating.
Value stocks are suitable for investors looking at almost sure-shot capital gains, in addition to regular dividend payments, without taking too many risks. Such stocks trade at a discount to various valuation metrics, but with high dividend yield and low P/E ratios.
The P/E ratio must be in the bottom 10% compared to peers, the PEG ratio must be less than 1 for the company to be considered undervalued, equity and debt must be almost equal, and the current ratio should be more than 2.
Which Value Stocks Should I Buy?
We have aggregated a list of the top value stocks for you to choose from. Investors must take into account their time horizon and risk endurance before investing in value stocks.
Before deciding to invest in value stocks, investors must analyze the fundamentals of the company in detail. The fundamentals of the company and the stock must be solid to ensure that the value stock will rise up in the future and generate the expected and desired value.
The risks associated with investing in value stocks cannot be completely eliminated. They trade at a discount compared to peers due to negative public perception towards them, and there is no certainty that the public attitude will change in the short-term. It may take some time to revamp from its undervalued position and may end up never doing so.
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