Investors concerned about Federal Reserve interest rate hikes and their impact on the stock market may want to consider value stocks. The companies are those that are currently trading below their intrinsic values. Value stocks held up better last year than the broader market, as the Federal Reserve raised rates to stamp out inflation. The iShares Russell 1,000 Value ETF dipped 9.7% in 2022, while the S & P 500 lost 19% and tumbled into a bear market.
While patients put off during Covid, as the pandemic "fades in the rear-view mirror," Medtronic should benefit, he explained. Shares are up more than 10% year to date and have another 5% upside to the average analyst price target. Truist Financial is also up about 10% this year. The bank announced last week it agreed to sell 20% of its insurance holdings for nearly $2 billion.