This way of picking value stocks has actually worked — and Berkshire Hathaway screens the best

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Value stocks are still the way to play the rise in global interest rates. But what's the best way of picking them?

Amazon.com’s earnings surprise is the story of the day, pushing even the jobs report into second billing. More on that in a second.

But what’s the best way to pick value stocks? Using price-to-earnings hasn’t worked over the last 20 years in the U.S., and particularly not in the last decade. And since 2000, buying the highest-yielding stocks each month has generated virtually no outperformance over the lowest yielding stocks, says Klement.

The buzz Amazon.com AMZN, -7.81% is set to bounce higher by some 12%, after crushing earnings estimates and announcing it will increase the subscription cost of its Prime service. Social-media companies Snap SNAP, -23.60% and Pinterest PINS, -10.32% are set to rally after results dispelled worries over their outlook following the downbeat forecast of Facebook parent Meta Platforms FB, -26.39%. Ford Motor Co. F, -3.59%, however, lagged behind earnings expectations.

 

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