(C) Reuters. 4 Buy-Rated Value Stocks to Buy for the Second Half of 2021
The major stock market indexes have been hitting new highs lately leading to sky-high valuations of several stocks and making it difficult for investors to find true value stocks. The stocks of FedEx (FDX), Dell (DELL), General Dynamics (GD), and Cognizant (CTSH) have immense growth potential but are currently trading at low valuations. So, we think it could be wise to scoop up their shares now.Value stocks were in focus earlier this year as investors rotated away from expensive growth stocks. While the fast-paced economic recovery and the low interest rate environment are helping growth stocks attract investors’ attention again, quality value stocks may have more room to run in the coming months. Investors’ interest in value stocks is evidenced by the SPDR Portfolio S&P 500 Value ETF’s (SPYV) and the Vanguard Value Index Fund ETF Shares’ (VTV) 14.9% and 15.5% respective year-to-date returns.
Even though the stock market has been volatile amid high inflation concerns, Wall Street closed the first half of 2021 at record highs. This has led to most stocks, including some fundamentally weak ones, to trade at lofty valuations. Some quality stocks are still trading at reasonable valuations, however.
We think FedEx Corporation (NYSE:FDX), Dell Technologies Inc. (NYSE:DELL), General Dynamics Corporation (NYSE:GD), and Cognizant Technology Solutions Corporation (NASDAQ:CTSH) hold immense growth potential, but their shares are currently trading at discounts to their peers. Our proprietary POWR Ratings system has rated these stocks Buy. So, it could be wise to bet on them now.
4 Buy-Rated Value Stocks to Buy for the Second Half of 2021
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