12/24/2023 0 Comments Value stocks to buy now![]() ![]() Most automotive suppliers are combinations of aftermarket parts and original equipment (OEM). The reason probably comes down to their exposure to slowing automotive production. Goodyear's consolidation playĪuto parts stocks have underperformed the market in recent years. That all adds up to a compelling proposition for long-term investors. Moreover, the bond markets like the company so much that it's been able to issue debt with negative yields in the past. Using Wall Street analysts' estimates, Siemens is currently trading at just 17 times 2021 FCF. Siemens' mobility business (rolling stock, rail infrastructure, customer services) gives the company solid FCF and diversification in its income stream. Its FCF can be used to support investment in more cyclical industrial businesses. The results are below, along with each company's ticker, latest closing price, price to fair value ratio, fair value uncertainty, and its economic moat rating.Meanwhile, Siemens' majority holding in healthcare giant Siemens Healthineers gives it stability during periods of economic weakness. In a separate note published earlier this month, editor Susan Dziubinski polled Morningstar analysts for their top undervalued stocks to buy this quarter. ![]() The only question is which stocks present the best opportunities. ![]() 33 undervalued investments worth buying nowĪlthough the market has recovered a bit of its momentum recently, stocks have still paused their run higher for long enough to present investors with an opportunity to buy while the buying is good. He pointed out that the sectors closely correlated to interest rates look particularly undervalued right now, including utilities and real estate. ![]() As a result, energy stocks look overvalued at the moment, while the rest of the market is undervalued by comparison. Instead, he wrote that he expects "the market to really broaden out, start moving into some of the other areas that have lagged thus far this year, specifically the value category, we still believe on a relative value basis is the most attractive area.Īs for sectors, Sekara said that the energy industry has enjoyed enormous benefits from the increase in oil prices. That said, Sekara warned that the magnificent seven trade has probably petered out by now, and gains for a group of stocks that have run so high so quickly this year will be harder to come by. And the mid-cap and the small-cap are still more attractive, in our view." "And then, by capitalization, large-cap stocks still remain fully valued, trading slightly above the market at this point in time. "So, again, with as much as growth has moved back down, we do think that now is a good time to move back to that market weight," he wrote. Now, with growth stocks cheaper than they have been in months, he's back on the bandwagon. He began 2023 overweight growth, then pared his call back to market-weight in the middle of the year after the AI hype sent growth stocks to the moon, then went a step further and declared himself underweight growth last quarter. Sekara was among those who had to try and keep up with the surprising moves among growth stocks this year. Sekara also pointed out that growth stocks bore the brunt of the recent sell-off - which seems fair, considering they did most of the heavy lifting in markets, with big tech propelling stocks higher than anyone expected. "We think that the Federal Reserve not only are they going to not be raising rates, we think their next move is actually going to be to start cutting rates next year." "We actually take a different view," he wrote. But as far as Sekara is concerned, the latter isn't as big of a problem as people think. In his analysis, Sekara outlined the three reasons behind the recent market downturn: long-term interest rates sapping company profits, rising energy prices hitting consumers hard, and the Fed's higher-for-longer monetary policy. Investor fears are creating opportunities Here's why he thinks the sell-off is happening, where the biggest opportunities lie, and which stocks look cheapest in today's market. In fact, since he made those calculations Sekara believes that the market may have gotten even cheaper, and now trades at closer to a 10% discount to fair value. This story is available exclusively to InsiderĪnd start reading now. Account icon An icon in the shape of a person's head and shoulders. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |