Best Value Stocks to Buy in 2024 - Elliott Wave Forecast (2024)

What are Value Stocks?

Value stocks are companies with share prices that are trading at a price that is lower than their intrinsic value. Investing in best value stocks is a smart investment strategy that can enable investors to capitalize on inefficiencies in the market which are not being reflected in the company’s current performance.An undervalued stock has a lower market value than its intrinsic value.

Characteristics of a Value Stock

No single factor alone defines a value stock. As an investor, you have to research to understand which characteristics do the stocks follow. Value stocks are defined by the below characteristics:

– Low P/E ratios: Price-earnings ratio defines the current price of the company in comparison to the company’s earnings. A low P/E earnings ratio indicates that the stock is undervalued.

– Performance of the company: Value stocks usually are established companies with a record of good financial performance.

– High dividend yield: A higher dividend than competitors is a sign of a value stock. But it can also be a sign of troubling financials. Hence a high dividend yield alone is not a sign of a value stock.

– Less Volatility:Since value stocks are trading at less than their intrinsic value, they are less likely to respond to news and events, hence are less volatile.You need to act quickly to take maximum advantage of an opportunity of volatile stocks.

According to a survey conducted by CNBC, value stocks are expected to perform better in comparison with growth stocks in the coming quarter. The below chart shows value stock vs growth stocks performance comparison.

Investing in value stocks is a long-term investment. Hence, as an investor, you need to stay put and wait a while before you can benefit from your investment. There is also stock advisory services that suggest some of the best value stocks to its members. Indicators and tools are used by both professional and regular traders, both to understand the market.

BestValue Stocks to Buy Now

Below is a list of value stock we have put together:

Sr.	Name	Symbol	Market Capitalization	EPS (As of 2020)	P/E	5 Year Average Dividend Yield
1		MRK	$190.5 billion	2.78	34.27	2.94
2	The Boeing Company	BA	$137.35 billion	-15.23	NA	NA
3	Huntington Ingalls Industries	HII	$8.23 billion	10.67	11.17	1.58
4	AbbVie	ABBV	$202.14 billion	2.72	30.85	4.22
5	Norton Life Lock	NLOK	$14 billion	0.9	23.04	1.57

1. Merck (MRK)

Merck & Co Inc is one of the world’s leadingpharmaceutical health care companies. Its principal business is medicines, biologics, vaccines, along with consumer and animal products. Merck gained popularity when FDA approved its cancer drug under the name Keytruda. In addition to Keytruda, the company has another drug under the name Gardasil, which prevents head and neck cancer. Moreover, the demand for animal and livestock products of Merck has increased leading towards higher sales.

In its recent Q2 report, the company reported worldwide sales of $11.4 billion, a 22% improvement from last year. The cancer drug, Keytruda, has been the major growth driver, comprising roughly 37% of total sales. Merck & Co. maintains several long-term exploratory and fundamental research programs in biology and chemistry as well as research programs directed toward product development. There was a more than 100% increase in R&D spending in the current quarter. The company reported EPS of $0.48 for the quarter.

Merck has been regularly paying dividends to its shareholder. In its recent quarter, a $0.65 dividend per share was paid. For the year 2020, a total of $2.48 dividend per share was paid.

With a market capitalization of over $190 billion, the share of Merck and Co is being traded at around $75. As per the below chart, since March-20 the share of the pharma company is moving within the range of $69 and $82.Small-Cap stocks are the best investment for long-term investors.

2. The Boeing Company

Boeing is the world’s largest aerospace company and leading manufacturer of commercial jetliners, defense, space, and security systems, and service provider of aftermarket support. As America’s biggest manufacturing exporter, the company supports airlines and U.S. and allied government customers in more than 150 countries. Boeing is organized into three business units:

– Commercial Airplanes

– Defense, Space & Security

– Boeing Global Services

In the recent Q2 report, the aerospace company reported revenues of $17 billion, a 44% increase from last year. Earnings per share were reported to be $0.4. In the year 2020, the company was under heavy losses due to the pandemic shutdown, and earnings were reported to be negative.

The airline industry has suffered massively due to COVID-19 and travel restrictions. Domestic flights are on the path to recovery but international flights are still lagging. Below is the growth chart of The Boeing company’s flights:

The two fatal crashes in 2018 and 2019 that saw its 737 Max range grounded have caused the company some serious reputational damage. And with the pandemic leading to shut down in 2020, Boeing has been unable to maintain its growth and stabilize itself. Moreover, the piling-up debt of the airline company is a rising concern for investors. But the good news is that this debt is short-term and with the air travel restrictions slowly easing, the Boeing company is en route to becoming the titan of the airline industry that it once was.

At a market capitalization of $138 billion, the aerospace company is still one of the largest aircraft manufacturers, despite the losses. The share of the company is currently trading at around $235.

As the above chart depicts, the stock of Boeing was not hit hard by the plane crashes as it was due to shutdown during COVID-19. Still, the company has come far on the path to recovery and is one of the best value stocks right now. If you are confused between investing in stocks or forex, we suggest you to read stocks vs forex – which is the best investment.

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3. Huntington Ingalls Industries

Huntington Ingalls Industries is America’s largest military shipbuilding company and a provider of professional services to partners in government and industry. For more than a century, HII’s Newport News and Ingalls shipbuilding divisions in Virginia and Mississippi have built more ships in more ship classes than any other U.S. naval shipbuilder.

Huntington Ingalls recently reported second-quarter 2021. Revenues of $2.2 billion were recorded, reflecting an approx. 10% increase from the second quarter of 2020. Earnings per share were reported to be $3.2, compared to $1.30 in the same period of 2020. For the second quarter, the company issued a dividend of $1.14/share and has announced the same dividend for the next quarter. Huntington Ingalls has a long history of paying dividends which has been steadily increasing over time.Using stock indicators, one can make wiser trading decisions.

4. AbbVie

AbbVie is a research-based biopharmaceutical company. The company is most popularly known through its drug Humira which is used to treat rheumatoid arthritis and other conditions.

The biopharma company recently issued its second-quarter report. The company delivered Net Revenues of $13.959 Billion, an approximate 34% increase from last year’s Q2. EPS was recorded at $0.42, as compared to negative earnings last year. There are stock Market forecastersthat use powerful tools and help regular investors make potential investment decisions on their own.

Amongst the health sectors, the drugs of AbbVie cater to, immunology is the major revenue contributor, near to 50%. Within immunology, the Humira drug contributes 90% towards the total revenue.

	Net Revenue
Immunology	22,153
Hematologic Oncology	6,651
Aesthetics	2,590
Neuroscience	3,496
Eye Care	2,184
Women’s Health	673
Other Key Products	5,134
Total	45,784

Humira is a blockbuster drug of Abbvie. But with new competition rising and a biosimilar drug available in Europe, the sales of this drug are declining. But the bio-pharma company has been smart enough to launch two more immunology drugs, Skyrizi and Rinvoq, launched in the last two years. This will decrease the company’s dependency on the sale of Humira and increase more avenues of growth for Abbvie.

Being a research-based biopharmaceutical company, spending upon R&D is very important for the company. In 2020, the company 14% of the total revenue is generated from R&D.

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AbbVie is one of the leading pharma companies. The Humira drug has been its top growth driver. With the company branching out to other drugs, AbbVie undoubtedly holds a strong place in the pharma industry.
AbbVie has a market capitalization of $201 billion. Trading at an approximate price of $114 the stock of the pharma company stays strong.

AbbVie stock is on a bullish streak for many months now. The share has been going strong since the drop due to pandemic and has great potential for the future. This is, without doubt, one of the best value stocks to invest in, in 2024. If you are thinking to invest in stock checkout best gold stocks to add gold to your portfolio.Read: Best Gold Trading Signal Providers.

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5. Norton Life Lock

NortonLifeLock is a global leader in consumer Cyber Safety. It is trusted by more than 80 million users in more than 150 countries. NortonLifeLock aims to protect and empower people to live their digital lives safely.

Quite recently, the antivirus company announced that it will be merging with Britain’s Avast PLC. With this merger NortonLifeLock plans to create a new, industry-leading consumer Cyber Safety business, leveraging the established brands, technology, and innovation of both groups to deliver substantial benefits to consumers, shareholders, and other stakeholders. This news was warmly welcomed in the investor world and the share price took a huge jump upwards following the news. Tech sector has increased and people are now investing in tech stocks.

In their recent quarterly report, the company reported net revenue of $686 million, an approximate 12% increase from last year during the same period. Earnings per share were reported at $0.31, as compared to $0.24 of last year’s quarter. The antivirus vendor has been regularly paying dividends, with the recent dividend paid of 12.5 cents
The market capitalization of NortonLifeLock is $15.27 billion. The share is currently trading at around $26.26. The stock has been performing well, as shown in the chart below.

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COVID-19 pandemic has left the general public more vulnerable to cybercrime, as a result, more and more people are seeking cybersecurity. With NortonLifeLock and Avast working together under one banner, the company has great potential to show explosive growth in the coming years. NortonLifeLock is, without a doubt, one of the best value stocks to buy in 2024.Penny stocks can also make you large amounts of profits.

Conclusion

Value Stocks and Growth stocks both are great investments. To invest smartly, as an investor, choose to diversify in value and growth stocks both. The above list of companies has been carefully selected based on the expected/forecasted explosive growth. Investing in them today will give a huge boost to your investment portfolio in near future.

Disclaimer: None of the information published in this article should be construed as investment advice. Article is based on author’s independent research, we strongly advise our readers to always do their due diligence before investing.

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