The trick to any investment is to buy your stock or invest when the market values are cheap, right? That way, when values begin to rise, you get returns on your investment (ROI). So, the real question then is, “which of the value stocks are worth investing in as of August 2022?” and The best value stocks to invest in now.
Forbes and some other investment and financial giants have listed Meta Platforms, Procter and Gamble, M&T Bank Corp, and some others as being the best value stocks to invest in in 2022.
We have made some research into the value stocks people are interested in today and made a list of them including why they might be of interest to you. Enjoy!
Definition of value stock
The definition of value stocks is not about growth or worth, but about cheap value compared to the financial standing of the company and also the ability of the stock to grow with time, not exponentially of course. Stocks like Tesla are growth stocks because they can increase exponentially and make the news.
Value stocks are defined based on their price which makes them relatively affordable. Values stocks generally don’t make the news. They are like the snails of the investment industry because their value increase is not dramatic but can be relied upon to generate a steady income if invested.
The 5 best value stocks of 2022
The value stocks mentioned below are in no certain order but have been consistently rated as being some of the best in the US.
- Meta Platforms – the Meta Platform, formerly known as Facebook has recently taken a dive and may not seem worth investing in. However, based on the fact that the platform has applications that are used by about half of the world’s population daily, it is a good value stock to invest in. The value of Meta Platform stock is not as high as others related to it, yet, it holds great investment potential. Yes, the value may not jump as high as you may want it but you can be assured that it will grow since they currently have the largest market of the social media platforms.
- M&T Bank Corps – is the holding company for MTB bank. As of August 4, 2022, the value of their stock is $175.44 with a projection of about $210. The value was at about $162 in June this year which shows that the stock progressively increases. Some of the reasons why MTB is a good value stock is that it is among the best 20 commercial banks in America and they are involved in real estate, retail, residential mortgage, business banking as well as securities, wealth management, etc. The MTB has a portfolio diversified enough to grow with time.
- Procter and Gamble (P & G) – the consumable products produced by P&G make them a reliable value stock. This is one of the reasons why this kind of company stock is called recession-proof or recession-resistant because their products will always be in demand, no matter what the economy is projecting. Procter and Gamble have been increasing its sales and stock payouts for over 60 years of existence. Its sales increased by 6% in 2021 and expanded its market shares too.
- Qualcomm Incorporated – Qualcomm deals in the conductor and semiconductor industry and has thus risen to be about one of the best value stocks to buy in 2022. Truth be told, the shares of Qualcomm have been nosediving for the better part of 2022, yet, the company’s valuation itself tells a different story. The story is that the rate of inflation making it seem like this is the best time to sell Qualcomm’s stock may not be true and since the stock is at its all-time lowest now, now might be the best time to buy more shares. There is a projection for an increase in the price of Qualcomm stock in the coming months because the company is expected to be a major player in the 5G technology. Coupled with the fact that phones and microchips are not things that could be taken out of the tech world, for now, their stock is going to be well worth the investment.
- Target Corporation – with over 1800 retail outlets all over the country, Target has become one of the best value stocks to invest in. As we all know, groceries are about the only thing that can never go out of demand because even the poorest of the poor need some food and personal items to get through the day. The price-to-earnings ratio of Target’s value stock at (18%) is about half the price of its rivals, Walmart and Costco, yet, it has projected them to the dividend king status in the last year.
What does value trap mean?
It is important to note that while some stocks may seem cheap and at their all-time low, the fact still remains that knowing the company’s valuation and projections to be sure that the company is not on its way to liquidation. These are value traps and should be avoided by all means.
Conclusion
There are a lot more value stocks out there. It is important to look out for their price-to-earnings ratios, price-to-earning-to-growth ratios, and price-to-book ratios before buying them to avoid value traps.
FAQ
- Who are value investors?
Value investors are long-term investors who are more interested in the long-term growth and earnings of a company they are planning to invest in. This is to say that they are more interested in constant long-term earning than one-time easy cashout.
- Why should I invest in value stocks?
It could be in your best interest to invest in value stocks because they are sometimes more predictable than growth stocks. Growth stocks can plummet at any time and never come up again, depending on the market.
