These 4 stocks are investment pros’ favorites — and not one is a ‘FAANG’ stock

It takes guts to be a value investor these days. But the top-performing investment newsletters have no shortage of courage. By value, I’m referring to stocks that are out of favor, trading for relatively low ratios of price-to-earnings, book value, sales, and so forth. Value’s opposite is growth: Stocks in this latter category typically trade for high valuation ratios.

All four of these stocks are instead solidly in the “value” category: Their average trailing 12-month PE ratio, for example, is 35% lower than the S&P 500’s SPX, -0.86% . Their average price/book ratio is 26% lower, and their average price/sales ratio is 10% lower. And given their status as value stocks, it is not a surprise that they have been lagging of late.

This is, and always has been, the classic refrain of the value investor, of course. Is there reason to believe that the newsletters’ faith in these stocks will be rewarded, even though value has lagged for the last 13+ years? Yes, and one reason is these newsletters’ excellent long-term records. It’s beyond the scope of this column to review the statistical tests that the authors used in analyzing each of these explanations, but you should read their report if interested. They rejected those hypotheses that would imply that value is permanently dead and concluded instead that “the stage is set for potentially historic outperformance of value relative to growth over the coming decade.”Mark Hulbert is a regular contributor to MarketWatch.

If it's not picked by Motley Fool, I'm cool.

jimcramer

My Apple stock, bought in 1985, is doing beautifully.

What’s that got to do w the oscars tho

México Últimas Noticias, México Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

FAANG emerges as the latest group to lead the market, Jim Cramer says'This market's been going through leadership groups like there's no tomorrow,' the 'Mad Money' host said. Well orchestrated. The stock market has become a fiction, which reflects zero reality. Lmaooooooooo the latest? jimcramer either this is a high level troll or you’ve been hopped up on drugs the last 10 years
Fuente: CNBC - 🏆 12. / 72 Leer más »

Cloud computing stocks are hitting an all-time high as coronavirus forces remote work, according to one measureDocuSign, Shopify, Twilio and Zoom have helped a grouping of smaller cloud names called the BVP Nasdaq Emerging Cloud Index outperform major indexes this year. SlackHQ slackd_hq motorious uniti_stores USTreasury federalreserve etrade youralley alleynyc wendy_alleynyc AlleyWatch AngelList Crowdfire _Slackbot_ ubuntu Freescale LogitechGesport NurburgringLive RUFAutomobile abt_usa PorscheRaces
Fuente: CNBC - 🏆 12. / 72 Leer más »

Investing strategy: How to build perfect portfolio using just 7 ETFs - Business InsiderThe investment chief of a $12 billion wealth management firm breaks down how to build the perfect portfolio using just 7 ETFs — one designed to avoid a dramatically 'overvalued' stock market I can build you a perfect portfolio with two ETFs.
Fuente: BusinessInsider - 🏆 729. / 51 Leer más »