Often seen as the opposite of growth investing, value investing seeks to maximize returns by finding stocks that are undervalued by the market. According to this strategy, investors assess a stock’s intrinsic value, often through a valuation method like discounted cash flow analysis, and compare that value with the stock price. If there is a significant margin of safetybetween the value and the price, meaning the intrinsic value is greater than the market value by a pre-determined amount, the value investor will buy the stock.
In this comprehensive guide to value investing, we will first discuss key concepts in value investing, value-investing strategies, and what separates it from other schools of investing; then we’ll review the history of value investing with a focus on the fathers of value investing — Benjamin Graham and Warren Buffett — we will look at some appealing undervalued stocks today, and examine whether or not value investing is right for you.
All about value investing
What distinguishes value investing from other popular strategies is that value investors believe stocks have an inherent or intrinsic value — a concrete number they can derive through techniques like discounted cash flow analysis. While growth investors may be more concerned about the story behind the stock or itsoptionality, meaning the possibility of a future that many can’t yet see (for example,Amazon with its cloud computing division Amazon Web services), value investors focus on the numbers, seeking stocks they believe the market is undervaluing. If the intrinsic value is greater than the market value, they would consider buying it.
Top Value Stocks To Own Right Now: Macy's Inc(M)
- [By Adam Levine-Weinberg]
Not too long ago, shares of department store giant Macy’s (NYSE:M) were priced for disaster. The stock bottomed in early November at $17.41, just six times the company’s 2017 adjusted earnings-per-share guidance.
- [By Timothy Green]
Shares of Ascena Retail Group (NASDAQ:ASNA) surged on Wednesday following a positive quarterly report from department store Macy’s (NYSE:M). Ascena’s second-quarter report in March was disappointing, leading to a steep drop in the stock price, but it seems that investors are now hoping that a rising tide will lift all boats. Shares of Ascena were up about 15% at 12:20 p.m. EDT.
- [By ]
2. Macy’s (NYSE: M)
This iconic American department store chain has fallen on a hard times. Once a leading name in retail, Macy’s has been reduced to a has-been in the competitive arena.
- [By Chris Lange]
Macys Inc. (NYSE: M) is scheduled to release its most recent quarterly results before the markets open on Wednesday. The consensus estimates from Thomson Reuters call for $0.35 in earnings per share (EPS) on $5.39 billion in revenue. The same period of last year reportedly had EPS of $0.24 and $5.34 billion in revenue.
- [By Adam Levine-Weinberg]
On Monday, top department store stocks including Macy’s (NYSE:M), Kohl’s (NYSE:KSS), Dillard’s (NYSE:DDS), and J.C. Penney (NYSE:JCP) lost roughly 3% to 4%. The catalyst was a negative analyst report.
Top Value Stocks To Own Right Now: OSI Systems, Inc.(OSIS)
- [By Shane Hupp]
Get a free copy of the Zacks research report on OSI Systems (OSIS)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
- [By Shane Hupp]
Here are some of the headlines that may have impacted Accern’s rankings:
Get OSI Systems alerts:
OSI Systems (OSIS) Rating Increased to Buy at Zacks Investment Research (americanbankingnews.com) OSI Systems (OSIS) Downgraded by BidaskClub (americanbankingnews.com) OSI Systems (OSIS) Downgraded by Zacks Investment Research to Hold (americanbankingnews.com) $274.42 Million in Sales Expected for OSI Systems, Inc. (OSIS) This Quarter (americanbankingnews.com) Zacks: Analysts Expect OSI Systems, Inc. (OSIS) Will Post Earnings of $0.94 Per Share (americanbankingnews.com)
OSIS has been the subject of several research reports. Sidoti initiated coverage on OSI Systems in a research note on Wednesday, February 21st. They issued a “buy” rating for the company. Zacks Investment Research raised OSI Systems from a “hold” rating to a “buy” rating and set a $69.00 price objective for the company in a research note on Wednesday, April 4th. ValuEngine lowered OSI Systems from a “hold” rating to a “sell” rating in a research note on Wednesday, May 2nd. Jefferies Group lowered OSI Systems from a “buy” rating to a “hold” rating and dropped their price objective for the company from $79.00 to $70.00 in a research note on Friday, February 2nd. They noted that the move was a valuation call. Finally, BidaskClub lowered OSI Systems from a “sell” rating to a “strong sell” rating in a research note on Saturday, January 20th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and four have given a buy rating to the stock. The company presently has an average rating of “Hold” and an average price target of $86.20.
Top Value Stocks To Own Right Now: BGC Partners, Inc.(BGCP)
- [By Logan Wallace]
LPL Financial (NASDAQ: LPLA) and BGC Partners (NASDAQ:BGCP) are both mid-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.
- [By ]
BGC Partners (BGCP) : “We’re in a market where Goldman Sachs (GS) got slammed. I’m going with them.”
Ecolab (ECL) : “That’s a terrific situation that I want you to buy more of if it comes down.”
- [By ]
Cramer was bearish on BGC Partners (BGCP) , Dr Pepper Snapple (DPS) , Sterling Construction Co. Inc. (STRL) and B&G Foods (BGS) .
Search Jim Cramer’s “Mad Money” trading recommendations using our exclusive “Mad Money” Stock Screener.