Bargain stocks are currently enjoying a resurgence as growth stocks teeter on the brink of a bubble burst. In this sea of change, value stocks stand out as alluring options, providing substantial long-term potential and attractive prices. These overlooked gems in the market present a unique chance for investors to diversify their portfolios and uncover hidden value.
Fortitude Amidst Turbulence: Pfizer (PFE)
- % Below 52-week high: 36.3%
Pfizer (NYSE:PFE) has weathered a storm, witnessing a decline of over 30% in its stock value over the past year. This downturn can be attributed to dwindling revenues from its COVID-19 vaccine. Despite challenges, a closer look reveals the market’s reaction may be overly pessimistic. Add in a noteworthy 6% dividend yield, and PFE emerges as an enticing value play.
Notably, Pfizer’s extensive portfolio extends well beyond vaccines, setting the stage for a fruitful 2024. With recent FDA approvals for nine new drugs, alongside a robust pipeline and anticipated revenue growth of 3% to 5% in 2024, PFE proves compelling at current levels.
Resilience in Adversity: AT&T (T)
- % Below 52-week high: 15.1%
Telecom giant AT&T (NYSE:T) has steered through choppy waters fraught with liquidity concerns. Despite the hurdles, its debt reduction efforts have paid off, significantly decreasing leverage amidst rising interest rates. Forecasts hint at a brighter financial horizon ahead, supported by a healthy 5.7% free cash flow margin and an appealing $1.11 annual dividend.
Navigating Challenges: PayPal Holdings (PYPL)
- % Below 52-week high: 25.4%
PayPal Holdings (NASDAQ:PYPL) showcases resilience despite recent setbacks. Robust financials, with a $1.5 trillion payment volume in 2023, highlight its prowess. Analyst concerns aside, PayPal’s market dominance and strategic initiatives fortify its competitive edge, promising enduring growth.
Adaptation and Evolution: Ford (F)
- % Below 52-week high: 20.4%
Ford (NYSE:F) showcases a remarkable turnaround, surmounting past challenges. Strong Q4 results, beating estimates by $1.6 billion, and CEO Jim Farley’s recalibrated EV strategies paint a compelling picture. Ford’s prudent adjustments and a robust 4.9% dividend yield position it favorably in the value segment.
Growth Amidst Legacy: Kraft Heinz (KHC)
- % Below 52-week high: 16%
Kraft Heinz (NASDAQ:KHC) spearheads growth in the food sector with innovative strategies. Enhanced marketing efforts and solid product innovation underpin its recent success. With a sturdy 4.6% dividend yield and optimistic forecasted earnings growth, Kraft Heinz emerges as a compelling value play for discerning investors.
Financial Giants Show Resilience Amidst Market Fluctuations
Highlighting H&R Block (HRB)
Source: Ken Wolter / Shutterstock.com
- Percentage Below 52-week high: 4.7%
H&R Block (NYSE:HRB) emerges as a standout player in the value stock sphere, showcasing its commitment to fintech innovation. The prospect of an IRS-free tax service has faded away, and its diversification into new avenues for sales generation presents a compelling case. The firm’s second quarter (Q2) non-GAAP EPS of a negative $1.27 surpassed expectations by 29 cents. Additionally, its revenue bump of 7.6% year-over-year to $179.08 million beat forecasts by $9.63 million.
Furthermore, the company’s strong dividend policy, offering a forward yield of 2.73% and an annual payout of $1.28 per share, illustrates its financial discipline and commitment to shareholder value. This strategy, complemented by eight years of consecutive dividend growth, highlights H&R Block’s ability to balance growth investments with rewarding its shareholders.
The Resilience of JD (JD)
Source: Sergei Elagin / Shutterstock.com
- Percentage Below 52-week high: 54.9%
In the past year, Chinese online retail giant JD (NASDAQ:JD) has experienced a roller coaster ride in the stock market. Its share price has reverted to its IPO price of roughly $25, a stark contrast from its pandemic highs. Despite the downturn in its stock price, JD’s underlying business metrics tell a story of resilience and growth, with notable bumps in sales and EPS in recent quarters. Having bested analyst estimates across both lines in the past three quarters, it trades at an appealing valuation of less than eight times forward earnings. In addition, it offers an attractive 2.6% dividend yield, 21% higher than the sector median.
Moreover, JD is diligently enhancing its customer value proposition through strategic initiatives to improve convenience and encourage recurring purchases. This includes expanding free shipping, lowering minimum order requirements, and offering unlimited free shipping for JD PLUS members. Additionally, the platform’s live-streaming sessions during key shopping events like Singles Day attracted over 380 million viewers, underscoring the company’s robust user engagement.