A value stock is one that appears to be undervalued when viewed from a variety of perspectives, including its valuation history, current stock price, dividend yield, market share dominance, and others. In light of this definition, it would seem reasonable to ask: Why wouldn't investors just buy value stocks? Value stocks do not tend to be newsmakers - some would even describe them as boring. As a factor-based investment strategy, value investing involves selecting stocks that you believe are priced lower than their actual value, based on a ratio between their price and one or more fundamental business metrics. The price-to-earnings ratio (P/E) is a widely accepted value metric. According to value investors, if a company is cheap in comparison to its intrinsic value (as determined by its P/E ratio in this instance), then it's possible that its stock price will rise faster than others as it returns to its true value. Here’s a look at stocks that can be considered values in today’s market.
United States Steel Corp
https://www.ussteel.com
The company manufactures high-value steel products, such as its XG3 advanced high-strength steels, which are used by automakers to produce lighter automobiles. With operations in the United States and Central Europe, the company serves the automotive, construction, appliance, energy, containers, and packaging industries. The raw steelmaking capacity of U.S. Steel is 26.2 million net tons per year. U.S. Steel announced on June 14 that Jessica T. Graziano would become its chief financial officer (CFO) on August 8. Prior to joining United Rentals, Inc. (URI), Graziano was the company's CFO.
NRG Energy Inc.
https://www.nrg.comThe company provides power, natural gas, and other services to residential, commercial, and industrial customers throughout the United States and Canada. A number of its primary brand names include Reliant, Direct Energy, Green Mountain Energy, and XOOM Energy. With over 6 million customers, NRG employs more than 6,500 people. According to NRG's earnings report for Q1 2022, its net income was $1.7 billion, up from a net loss for the prior-year quarter. Revenue declined slightly over the prior-year quarter. YOY, revenue declined slightly. A key contributor to the company's improved results was its Texas segment, which posted a four-fold increase in net income, while the Texas segment moved from a net loss to a $773.0 million profit.
Rent-A-Center Inc.
https://www.rentacenter.comRent-A-Center is a leader in the rent-to-own industry dedicated to improving the lives of their customers. Rent-A-Center understands that making a decision about furniture, appliances, and electronics can be a stressful process, which is why they offer the Rent-A-Center Worry-Free Guarantee: they give you the name-brand items you want, such as Ashley Furniture, Whirlpool appliances, and Samsung electronics, at a payment you can afford, with the option to own it when you are ready. Moreover, they offer a 6-month same-as-cash option, an early purchase discount, competitor price matching, and free same-day delivery services. It is anticipated that Rent-A-Center will be able to expand its partner network following its recent acquisition of Acima Holdings, which provides rent-to-own financing at over 15,000 retail stores. A 31% increase in revenue was attributed to the acquisition by Rent-A-Center in its first-quarter earnings report for 2022.
Cleveland-Cliffs Inc.
https://www.clevelandcliffs.comHistorically, Cleveland-Cliffs has been recognized as one of the largest and oldest independent iron ore mining companies in the United States. With the acquisition of two prominent steel companies in the United States in 2020, Cleveland-Cliffs is ensuring the company's success for the next century. In the current economic climate, they are one of the largest flat-rolled steel companies in North America and the largest producer of iron ore pellets in the world. From mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing, as well as hot and cold stamping of steel parts and components, the Company is vertically integrated. Having self-sufficient raw materials for steelmaking operations provides them with a unique advantage. As part of their ongoing efforts to reduce waste, improve water conservation, and reduce carbon emissions by 25% by 2030, we are committed to becoming North America's leader in sustainable steelmaking and mining. Stainless steel tubing and other products are also supplied by the company. There are 26,000 employees employed at 68 operating facilities within the company.
Azenta Inc.
https://www.azenta.comAzenta provides a range of sample management and genomic services, including drug development, sample and material storage, and clinical trial management to the life sciences industry. The company's customers include pharmaceutical, biotechnology, and life sciences research companies and institutions. There are approximately 3,000 employees in its North American, European, and Asian operations. As part of its acquisition plans, Azenta announced on June 8 that it would acquire Barkey Holding GmbH, a maker of controlled rate thawing devices based in Germany, as well as its subsidiaries. There are applications for Barkey's products in the pharmaceutical, biotech, and medical industries. The total purchase price is about 80 million euros ($84.6 million), which is expected to close in July.
Ashland Global Holdings Inc.
https://www.ashland.comAs a manufacturer of specialty materials, Ashland Global Holdings serves a variety of markets, including energy, automotive, construction, food, and architectural coatings. The company employs approximately 4,200 people and serves customers in more than 100 countries. The second quarter of the company's fiscal year 2022 ended on March 31, 2022. According to Ashland's quarterly earnings report released on April 26, its net income increased 19-fold on the back of higher sales year-over-year. For the period under review, each reportable segment experienced double-digit sales growth.
CVS Health Corp.
https://www.cvshealth.comProviding care in a way that no one else can, CVS Health is the leading provider of health solutions. The organization reaches more people and improves the health of communities across the country through its local presence, digital channels, and over 300,000 committed colleagues, including more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. It is their mission to help people everywhere and at any time with their health needs, whether that is managing chronic diseases, maintaining compliance with medication, or accessing affordable health and wellness services. The organization helps people navigate the health care system and their personal health care by improving access, reducing costs, and serving as a trusted partner for every meaningful moment in their lives.
Coterra Energy Inc.
https://coterra.comAn independent oil and gas exploration and production company, Coterra Energy focuses on the Permian Basin, Marcellus Shale, and Anadarko Basin. The financial results of Coterra for Q1 2022 were announced on May 2. As a result, the company reported a nearly five-fold increase in net income as revenue tripled year over year. Performance was attributed to strong program execution and favorable commodity prices, according to Coterra.
Marathon Oil Corp.
https://www.marathonoil.comAn independent energy company, Marathon Oil is engaged in the exploration and production of oil and gas. There are four major resource plays in the U.S. where the company operates: Eagle Ford in Texas, Bakken in North Dakota, STACK and SCOOP in Oklahoma, and Permian in New Mexico-as well as operations in Equatorial Guinea. There is an approximate 50/50 split between oil and gas/NGL production at Marathon Oil. A quarterly dividend of 8 cents per share of common stock was paid on June 10, an increase of 15% over the previous base dividend.
M&T Bank Corp.
https://www3.mtb.comAs the holding company of M&T Bank, which ranks among the top twenty commercial banks in the United States, M&T Bank Corp. is a holding company. The company offers a variety of products and services, including business banking, commercial banking, real estate, residential mortgage, and retail banking, but it is also involved in trust and wealth management, institutional brokerage, security and investment management. Financial institutions' stocks suffered last year, along with those of many other banks. There is, however, a rise in interest rates, and bank profits are likely to follow.
CF Industries Holdings Inc.
https://www.cfindustries.comIn order to feed and fuel the world sustainably, CF Industries provides clean energy. A focus on safe and reliable operations, environmental stewardship, and disciplined capital and corporate management has led them to the goal of decarbonizing their ammonia production network - the world's largest - to provide green and blue hydrogen and nitrogen products for energy, fertilizer, and emissions abatement. Having nine manufacturing facilities in the United States, Canada, and the United Kingdom, and an unparalleled distribution, storage, and logistics network across North America underpins our strategy to accelerate the transition to clean energy globally.
American Tower Corp.
https://www.americantower.comAs one of the world's largest Real Estate Investment Trusts (REITs), American Tower Corporation owns, operates, and develops wireless and broadcast communications real estate. There are approximately 221,000 communications sites in their global portfolio, including nearly 43,000 in the United States and Canada, as well as 177,000 overseas. The company also offers customized solutions through in-building systems, outdoor distributed antenna systems, and other right-of-way options, as well as managed rooftop services, to accelerate the deployment of networks. In addition to its headquarters in Boston, Massachusetts, American Tower has operations in Argentina, Australia, Bangladesh, Brazil, Burkina Faso, Canada, Chile, Colombia, Costa Rica, France, Germany, Ghana, India, Kenya, Nigeria, Paraguay, Peru, the Philippines, Poland, the Republic of South Africa, the Republic of Spain, and Uganda.
Devon Energy Corp.
https://www.devonenergy.com
Founded in 1978, Devon Energy Corporation is one of the world's leading independent oil and natural gas exploration and production companies. Onshore operations are the main focus of Devon's operations in the United States. Its portfolio of oil and gas properties provides a stable, environmentally responsible source of production and a platform for future expansion. According to estimates based on the Devon-WPX merger, the company's fourth-quarter 2020 production was approximately 300,000 barrels of oil, more than 125,000 barrels of natural gas liquids, and about 920 million cubic feet of natural gas. They are committed to delivering a consistently competitive shareholder return among their peers. A key tenet of our success is delivering sustainable, capital-efficient cash flow growth in the exploration, development, and production of oil and natural gas.
Qualcomm Inc.
https://www.qualcomm.com
It is Qualcomm's vision to create a world where everyone and everything can be intelligently connected. Qualcomm makes possible an array of products and technologies every day, including 5G-enabled smartphones that can be used as professional cameras, gaming devices, smarter vehicles and cities, and the technology behind smart, connected factories. Regardless of where you are located, we have powerful connectivity solutions that will keep you connected. A connected intelligent edge is powered by Qualcomm's 5G and artificial intelligence innovations. Across multiple industries and to billions of people every day, our technologies can be found behind and inside innovative solutions.
Occidental Petroleum Corp.
https://www.oxy.com
For more than 100 years, Oxy has developed extensive assets, infrastructure, expertise, and technology that have fuelled progress and improved lives around the globe. It is now possible to leverage these resources in order to address some of the most pressing environmental issues facing our planet. They are committed to taking bold steps toward the development of low-carbon technologies as part of their desire to become part of the solution. Occidental Petroleum is primarily involved in the exploration and production of oil, natural gas liquids, and gas. Gas and oil storage and transportation are part of the company's midstream business. Furthermore, the company manufactures and markets a variety of other products in addition to chemicals. Each year, Occidental stores up to 20 million tons of carbon dioxide.
Continental Resources Inc.
https://www.clr.com
A company called Continental Resources explores and produces oil and gas. The company is one of the largest landowners and oil producers in the Bakken oil fields in North Dakota and Montana. North Dakota, Montana, Oklahoma, Wyoming, and Texas are the states where the company operates. The company announced on June 14 that the chairman of the company, Harold G. Hamm, and his family had submitted a non-binding proposal letter for the company to acquire all outstanding common shares for cash. Approximately 9% above the closing price of the stock the day before the offer was announced, the family offered $70.00 per share. There are approximately 83% of outstanding shares are owned by the Hamm family. A special committee will be established by Continental to consider the proposal.
McKesson Corp.
https://www.mckesson.com
As a global healthcare company, McKesson offers products, distribution, and services to a wide range of customers, including retail pharmacies, specialty clinics, surgery centers, physicians' offices, and nursing homes. The company employs approximately 75,000 individuals. In a press release dated June 23, the company announced a joint venture with HCA Healthcare Inc. (HCA) that will provide oncology services to patients and providers. McKesson and HCA will join forces to form an integrated research organization to expand clinical research and accelerate the development of oncology-related drugs. The joint venture is expected to be finalized this year with McKesson owning 51% and having operating control.
Exxon Mobil Corp.
https://corporate.exxonmobil.com
Among the world's largest publicly traded energy providers and chemical manufacturers, ExxonMobil develops and applies next-generation technologies to meet global demand for energy and high-quality chemicals. The availability of energy is fundamental to human comfort, mobility, economic prosperity, and social advancement. Modern life is impacted by it in nearly every aspect. As a marketer of kerosene for more than a century, ExxonMobil has evolved into one of the world's largest publicly-traded companies, innovating in energy and chemicals. Leading the way in almost every aspect of the energy and chemical manufacturing industries, we operate facilities or market our products around the world, explore for oil and gas on six continents, and develop next-generation technologies to help power global economies and mitigate climate change risks.
Camping World Holdings Inc.
https://investor.campingworld.com
A subsidiary of Camping World Holdings, Inc. is the nation's largest retailer of RVs and related products and services. The Camping World and Good Sam brands have been serving RV consumers since 1966, as part of our vision to build a long-term legacy business that makes RVing fun and easy. In order to create long-term value for our customers, employees, and shareholders, we combine a unique and comprehensive selection of RV products and services with a nationwide network of RV dealerships, service centers, and customer support centers along with the industry's most extensive online presence, as well as highly-trained and knowledgeable associates serving our customers, the RV lifestyle, and the communities in which we operate. Furthermore, they believe that Good Sam's organization and family of programs and services uniquely qualify them as stewards of the RV enthusiast community and the RV lifestyle.
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