In this decade of market expansion, growth stocks have had their bit of shine due to the great returns they have offered. However, it doesn’t mean that the scope for value stocks have come down by any means. While growth stocks offer you a return in quick terms, value stocks, on the other hand, are meant for the long run. Due to their low valuation, it can help you limit the downside potential as an investor.
There are many value stocks that have easily outplayed other major performers in the market in the long run. If you are a patient investor, here are the best value stocks to invest your money right now-
General Dynamics: The black horse of value stocks
General Dynamics is popular because of one of its most consistent customers, the U.S. Military. In the long run, this stock has beaten the S&P 500 by a good margin. If calculated from 1977, GD has gained 2263% in comparison to the S&P 500’s 1183% growth in the same period. The specialty of this defense contractor is making machines such as submarines, tanks, and various other communication equipment. For the recent Q4, GD reported an EPS of $3.51 and a substantial 12.2% growth in net earnings.
United Rentals: Equipment renter for all
United Rentals is rightfully one of the biggest renters of construction/industrial tools and equipment. In the last 3 years, the revenue has kept increasing in double digits. If we calculate since the IPO of United Rentals in 1997, it is seen that the stock has left behind the S&P 500 by massive numbers. In the same time frame, the growth for United Rentals is 866% whereas S&P 500 is 248% only. Entering in 2020, the company forecasts growth of at least 4-5% more than the previous year. Undoubtedly that’s a slower growth rate, but when we take into consideration that it is a value stock, it truly is an appealing prospect for the investor in you!
Berkshire Hathaway: The all-time favorite value stock
This is undoubtedly the best value stock of all times due to the amazing fund management. The investment is done on a wide array of enterprises which further makes it stable and complete value for your investment wealth. Since 1996, Berkshire Hathaway has grown as much as 786% in comparison to 279% of the S&P 500. The only major setback for the stock was its investment in Kraft Heinz in 2015. However, that did not shake up the stock because the major investment for the stock is rooted in insurance businesses. The company has $128 billion cash in the reserves which perfectly makes it the future-ready stock to invest in because today or tomorrow, a recession is all set to happen again!
Money is where the heart lives and it is advised that you make the best calls for your heart!