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Barron's: 13 Stocks Both Growth, Value Investors Will Love

Barron's: 13 Stocks Both Growth, Value Investors Will Love

 Larry Metayer | Dreamstime.com

By    |   Friday, 11 September 2020 09:26 AM

Barron’s recently launched a quest for the best stocks that exhibit characteristics often sought out by both growth and value investors.

“Namely that they’re cheap on one key metric, but also expected to increase earnings faster than the index average in 2021 and over the long term,” the financial publication explained.

Growth stocks are those shares that are expected to grow faster than the average stock. Such investments often show fast growth in metrics like sales, earnings, book value, and cash flow. Most of these companies have high valuations such as high price-earnings ratios, theStreet.com explained.

Value stocks as those that are less expensive or that are growing at a slower rate than the average stock. Value stocks generally show slower growth in metrics such as sales, earnings, cash flow, and book value. Dividend yields are typically higher than the average stock, while their price to earnings ratio is often lowerm theStreet.com said.

Meanwhile, Barron's explained that the stock market’s recent abrupt slide from record highs hinted of a sea-change to value stocks from growth investments.

“Many investors seemed to be deciding that businesses that are more sensitive to the economic recovery—and whose stocks trade at cheaper valuations—are a better bet today than pricier growth companies. On the other hand, second-wave concerns and rock-bottom interest rates continue to favor the latter group. Time will tell which camp is correct,” Barron’s said.

After Barron’s crunched the numbers and the dust settled, this baker’s dozen remained:

  1. Bank of America BAC
  2. Chubb CB
  3. CBRE Group CBRE
  4. Capital One Financial COF
  5. Deere DE
  6. Discover Financial Services DFS
  7. Diamondback Energy FANG
  8. Corning GLW
  9. Pioneer Natural Resources PXD
  10. Everest Re Group RE
  11. Valero Energy VLO
  12. Wells Fargo WFC
  13. W.R. Berkley WRB

Meanwhile, global investors don’t seem to be taking the Nasdaq 100 Index’s recent 11% slide over three days and overall market volatility as signs of bad things to come.

Most money managers are either looking to buy the dip or sticking to their stock bets on expectations that stimulus measures and an economic recovery will support stock prices and offset concerns linked to the U.S. election and the development of a successful coronavirus vaccine, Bloomberg explained.

“With still significant amount of cash on the sidelines, coupled with still very easy monetary and fiscal policies, we reckon there should be buying on dips,” said Michael Foo, chief investment officer of HP Wealth Management (S) Pte. “Bottom line: We do not believe this is the start of a bear market.”

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Barron’s recently launched a quest for the best stocks that exhibit characteristics often sought out by both growth and value investors.
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2020-26-11
Friday, 11 September 2020 09:26 AM
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