Value stocks are poised for another strong year. The core reason is that companies with stable free cash flows, strong balance sheets, and a history of dividend payments are likely to be seen as safer investments than growth stocks. Momentum investing is essentially an exception to the idea of 'buying low and selling high.' Investors following this style of investing are more likely to buy stocks that have already seen a surge in price, and hold them until the price drops. Like billionaire investor Warren Buffett, I'm a massive fan of buying value stocks. Snapping up undervalued companies can turbocharge an investor's portfolio over the long term.
REPYY, BZLFY and CVI made it to the Zacks Rank #1 (Strong Buy) value stocks list on February 21, 2023. These stocks are all predicted to outperform the market in the near future. With the exception of Apple, eight tech giants are no longer “pure growth” stocks, while Exxon and Chevron are, a new study says. This is a sign that more Investors are beginning to favor value stocks over momentum stocks.
In this article, we will take a look at the 15 most undervalued value stocks to buy according to hedge funds. To see more such companies, we can look out for stocks that are trading at less than their book value, those with strong dividend yields and those with low EV/EBITDA ratios. Some speculative S&P 500 stocks may be getting some lift this year. But make no mistake — value stocks are still in control.