The age-old struggle to find the top value for your dollar continues to fester in the investment world.
Tracey Ryniec, the editor of Zacks Value Investor portfolio, recently crunched some numbers to find some of the recent lofty “value” stocks likely to climb even higher.
A value stock is commonly defined as a stock that trades at a lower price relative to its fundamentals, such as dividends, earnings, or sales, making it appealing to value investors, Investopedia explains.
Zacks focused on stocks trading within 10% of their 52-week highs, and narrowed the field to shares ranked “Strong Buy” and “Buy” to find companies with rising earnings estimates.
- H&E Equipment Services (HEES). Shares are up nearly 70% and are trading at 52-week highs.
- Intel (INTC) is trading within 8% of its 52-week high and is up 22% on the year.
- Builders FirstSource (BLDR) is at new 52-week highs, up 109% year-to-date..
- Sony (SNE) “continues to be one of the few media and gaming companies that is being overlooked by the Street,” Zacks said. Shares are at the 52-week highs, up 25% year-to-date.
- Phillips 66 (PSX) “is a surprise on this list because it’s in the energy industry, which has seen tough times in 2019.” The fourth-largest refiner in the United States is trading near its 52-week high, up 34% year-to-date.
After sitting on the sidelines for most of the year, investors are now rushing to the equity market, afraid of missing out on the brisk rally amid increased optimism about global growth, according to a survey of fund managers by Bank of America Corp.
Expectations for a worldwide economic recovery surged by a record amount at the start of November compared to October, according to responses from participants that oversee a total of $574 billion. Cash levels plunged to the lowest level since June 2013, Bloomberg reported.
“The bulls are back, global recession concerns vanish and ‘Fear of Missing Out’ prompts wave of optimism and jump in exposure to equities and cyclicals,” said BofA strategists led by Michael Hartnett.
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