Value Stocks – This $15 Stock is a Sweet Buy
As the old saying goes, “everyone loves a deal.” Value stocks are no exception. In fact, internet searches for value stocks have grown more than 3x over the past year. Much of this is related to the economy, which continues to recover from the COVID-19 pandemic. Plenty of stocks dropped significantly in the Spring of 2020 and have yet to recover. Many of these may be seen as examples of value stocks.
Investors looking for value stocks may target companies that have experienced a downturn as of late. But these companies also have many other strong indicators to carry them through the years to come. Another strategy, and perhaps a stronger one, is to pursue long-term steady performers, such as blue chips stocks.
What Are Examples of Value Stocks?
Value stocks appear to be trading at a lower price when compared to metrics such as earnings, cash holdings, dividends, etc. Value stocks may also be priced lower due to negative or unfavorable views of the company within the stock market.
Examples of Value Stocks:
- AbbVie (NYSE: ABBV)
- Berkshire Hathaway (NYSE: BRK.A)
- Bristol-Myers Squibb (NYSE: BMY)
- Lowe’s (NYSE: LOW)
Many investors consider these companies to be undervalued. But one of our experts has been talking a pick that is too sweet to pass up.
Hostess Brands (Nasdaq: TWNK)
Earlier this week, Trade of the Day’s Bryan Bottarelli highlighted Hostess Brands (Nasdaq: TWNK) as “the best way to play both growth and value stocks at the same time”.
Bottarelli went on to say “Many investors don’t realize that Hostess is a public company. It came out of bankruptcy in 2013 and went public three years later. Hostess has leveraged its brand recognition by offering a wide assortment of new flavors and varieties, such as banana creme and blueberry creme Twinkies. And right now, Hostess is an under-the-radar recovery story.
Trading at 18 times 2021 projections, it’s one of the fastest-growing food companies, with sales growth at 4% and earnings per share growth at 10%. This is why J.P. Morgan has given it an “Overweight” rating and a $20 price target.”
As a value pick that’s also experiencing the strongest growth within the packaged goods sector, Hostess Brands (Nasdaq: TWNK) is a “Buy” at current levels.
How To Find Value Stocks
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