Value Stocks and ETFs - Top Picks for December 2024
Maximize your investment potential with ValueRays handpicked Value Stocks & ETFs for December 2024 ✓ Start today!
Value Stocks
| Symbol | Business | 1 Year Performance |
Beta | Dividend Yield |
Growth Rating |
Market Cap |
|---|---|---|---|---|---|---|
| BRK-B | Warren Buffet | 27.54% | 0.74 | 0.00% | 84.56 | 968,557m |
| LIN | Chemicals | 5.69% | 0.96 | 1.31% | 87.17 | 219,504m |
| SNPS | Software | -11.69% | 1.27 | 0.00% | 79.69 | 78,364m |
| CPRT | Diversified Vehicles Services | 21.52% | 1.15 | 0.00% | 81.65 | 59,816m |
| CBOE | Stock Exchange | 11.38% | 0.59 | 1.23% | 66.05 | 20,482m |
| FDS | Financial Information | 7.90% | 0.89 | 0.85% | 61.24 | 18,150m |
Value ETFs and Funds
| Symbol | Strategy | 1 Year Performance |
Beta | Dividend Yield |
Technical Rating |
Market Cap |
|---|---|---|---|---|---|---|
| XLG | Top 50 of S&P500 | 33.31% | 0.99 | 0.53% | 91.85 | 7,694m |
| QUAL | USA Quality Factor | 21.78% | 1.01 | 0.76% | 79.57 | 50,984m |
| SCHD | Dividend Grower with Fundamental strength | 10.30% | 0.85 | 2.67% | 79.38 | 66,921m |
| COWZ | Top 100 Cash Flow companies in Russel 1000 | 11.68% | 0.98 | 1.92% | 88.36 | 26,843m |
How ValueRay assess the best Value Stocks
ValueRay defines value not by their current valuation, but by their quality to create consistent returns. You may therefor call them "Consistent Quality Stocks". The Stocks and ETFs have to fulfill the following requirements, after that they are each manually checked by further requirements and selected. All calculations are updated daily.
Requirements for Stocks
- ROE > 15%
- ROIC > 10%
- FCF Margin > 5%
- Gross Margin > 40%
- Debt/EBITDA < 2
- EPS Stability > 60%
Requirements for ETFs and Funds
- CAGR > 12%
- ValueRay Technical Rating of 7.5 and higher
- Market Cap > 2.0 B USD
- TER < 0.5%
- Minimum 5 Years old
- Well known, trusted issuer with sound Strategy
Value Stocks: Insights from a Fund Manager
Hello, my name is Matthias Schneider. I am an investor with years of experience in the financial sector and been navigating the choppy waters of growth stocks, I've got a tale or two to tell. But today, let's chat about something a bit different, something that might be more up your alley, especially if you're a guy in your 30s to 50s: value stocks. Now, don't get me wrong, I love the adrenaline rush of growth stocks, but there's something reassuring about the steady, reliable nature of value stocks. Let's dive in.Understanding Value Stocks
What Exactly Are Value Stocks? Imagine you're at a garage sale, and you find this vintage watch priced way lower than it should be. That's a value stock in the investing world – assets that are kind of like hidden gems, overlooked and undervalued. Historically, value stocks have been like that reliable old truck your grandpa had – not flashy, but gets the job done. They might not have the rapid growth of tech stocks, but they've shown stability, especially in turbulent times.Why You Should Consider Value Stocks
Risk Management: Keeping It Balanced If you're like me, in your 30s to 50s, you're probably thinking about securing your financial future. Maybe you're saving for your kid's college or eyeing retirement. Value stocks are like the Swiss Army knife in your investment toolkit – versatile and practical.Remember that time you tried to grill for the first time and almost burned the house down? Investing all in growth stocks can sometimes be just like that. Value stocks, on the other hand, are more like your trusty oven – reliable and less likely to cause a fire. They help balance your portfolio, reducing the risk without compromising on potential gains.
Transitioning from Growth to Value
Diversify Yourself I remember the day I first seriously considered value stocks. It was after a particularly volatile week in the market, and I realized I needed something more stable. It's like switching from sports cars to SUVs – a different experience but surprisingly satisfying.If you're thinking of shifting gears, start slow. Rebalance your portfolio, maybe move a portion into value stocks. Look for companies with strong fundamentals but whose stocks are trading below their intrinsic value.
4) Where Are the Opportunities Now?
Real-World Examples: Sectors like healthcare and consumer goods are showing potential. They're like those steady-eddy friends who are always there, rain or shine.Take EPD, for example. They've been around for ages, consistently paying dividends, yet their stock is priced lower than what it's really worth. It's like finding a designer suit on a discount rack – a total steal.
5) Why Value Stocks Are a Smart Choice
Building Financial Security: Value stocks are like the bricks in your investment foundation – solid and dependable. Over time, they can provide both growth and a cushion against market volatility. As retirement looms closer, stability becomes key. Including value stocks in your retirement plan is like adding an extra layer of insulation to your financial house – it just makes sense.6) How to Get Started
Research and Analysis: Start by doing your homework. Look for companies with solid fundamentals: good cash flow, strong balance sheets, and a history of stability. It's like choosing a new car – you want one that's reliable, not just flashy. Begin by evaluating your current portfolio. How much of it is in high-risk growth stocks? Maybe it's time to shift a bit into more stable value stocks. Think of it as diversifying your diet – you can't live on steak alone, you need your veggies too.FAQs
What are value stocks?
Value stocks are like hidden gems in the stock market. They're shares of companies that may not be in the spotlight but have solid fundamentals. Think of them as stocks that are kind of on sale – they're trading for less than what they're potentially worth based on their financials, like earnings or dividends. Investors who pick value stocks are like savvy shoppers looking for quality items at a discount, hoping that eventually, everyone else will see the value they've spotted.
Value stocks are like hidden gems in the stock market. They're shares of companies that may not be in the spotlight but have solid fundamentals. Think of them as stocks that are kind of on sale – they're trading for less than what they're potentially worth based on their financials, like earnings or dividends. Investors who pick value stocks are like savvy shoppers looking for quality items at a discount, hoping that eventually, everyone else will see the value they've spotted.
How to value a stock?
Valuing a stock is a bit like detective work. It's all about gathering clues to figure out the 'real' worth of a company. You dive into things like how much profit the company makes (that's earnings), how much debt it has, and its overall financial health. Tools like the Price-to-Earnings (P/E) ratio can be super helpful. It's like comparing the price tag of the stock to how much money the company is making. There's no one-size-fits-all method, though. It's a mix of numbers, industry trends, and sometimes a bit of gut feeling about the company's future.
Valuing a stock is a bit like detective work. It's all about gathering clues to figure out the 'real' worth of a company. You dive into things like how much profit the company makes (that's earnings), how much debt it has, and its overall financial health. Tools like the Price-to-Earnings (P/E) ratio can be super helpful. It's like comparing the price tag of the stock to how much money the company is making. There's no one-size-fits-all method, though. It's a mix of numbers, industry trends, and sometimes a bit of gut feeling about the company's future.