S&P 500 Value Stocks
These are value stocks and they rarely make headlines like some of the Big 7 which make up the bulk of the Nasdaq 100, but for a certain type of long-term investor, they may make sense. These are mature companies that have been around much longer than, say, Microsoft
MSFT
Benjamin Graham from the Columbia University Business School wrote about stock selection methods, and his student, Warren Buffett, made history in the world of investing by applying them. Value stocks still exist despite the intense focus on the growing technology and social media sectors during this era.
Value stocks on the NYSE.
BAC
The market capitalization of is enormous: $234.72 billion. It trades at 91% of book value with a price-to-earnings ratio of 8.31. The Charlotte, North Carolina-based company pays a 3.09% dividend.
This year’s profits are growing at a rate of 7.75% and have increased by 15.36% over the past five years. In early November, Keefe Bruyette upgraded the stock from “underperform” to “market perform” and set a price target of $29 to $30.
Bank of America Weekly Price Chart, 11 21 23.
General manager
can be purchased at a 48% discount on the book. Now trading with a price-to-earnings ratio of 3.92, the company’s market capitalization stands at $38.21 billion. Investors receive a dividend of 1.23%.
Profits for this year are down 1.61%. The EPS record of the last 5 years shows an increase of 240.48%. In early November, Barclays upgraded the stock to “overweight” from “equal weight” with a price target of $37.
General Motors Weekly Price Chart, 11 21 23.
Hewlett-Packard, one of the oldest schools of tech names, trades with a price-to-earnings ratio of 19.14 and at 97% of its book value. The market capitalization of the Spring, Texas-based company is $20.04 billion.
This year’s earnings are up 4.94% and the 5-year EPS growth rate stands at 25.61%. Citi Group
VS
Hewlett Packard Enterprise Weekly Price Chart, 11 21 23.
TFC
is a regional bank headquartered in Charlotte, North Carolina. The stock has a price-to-earnings ratio of 7.94, trades at a 24% discount to book value, and has a market cap of $42.12 billion.
In early September, Piper Sandler lowered Truist’s rating from “overweight” to “neutral,” with a price target reduced from $36 to $32. In late September, Keefe Bruyette upgraded the stock from “market perform” to “outperform” with a price target of $37 to $36.
Truist pays a 6.59% dividend.
Truist Financial Weekly Price Chart, 1 21 23.
While no guarantees exist, value stocks in general tend to offer less volatility than the growth stocks that dominate the Nasdaq 100. That’s not to say their price doesn’t drop sometimes, but it is generally at a less thrilling pace – and dividends generally continue to be paid.