5 TIPS FOR BUYING VALUE STOCKS
Notes from our partner Joseph Hogue's video on value stocks
For the first time, growth stocks have been wildly outperforming value stocks, but it seems as though a pullback is beginning to happen. Can you capitalize off this shift?
Our partner Joseph Hogue broke down why value stocks could be your best bet as the economy changes. Here are 5️⃣ gems he shared!
1️⃣ Joseph points out that many value stocks are in fact now “undervalued.” This means they have PE ratios at least 10% below the 3-year average, or the share price itself is more than 10% below analyst expectations. 👀
2️⃣ Stock Card’s screener tool is perfect for detailed research like this. Joseph used it to filter for undervalued stocks with positive sales track records and no cash concerns. Not shown in the image are also filters for +3% dividend yield, to get paid while you wait!
3️⃣ If you’re analyzing a biotech company, it’s NECESSARY to take a hard look at its pipeline. Other financials certainly matter like always (for example, cash availability) but for this particular industry, clinical trials and products brought to market are king.
4️⃣ Wise words of warning from Joseph: value investing is based on strong fundamentals, but you need to do diligent research and listen to the people who have an opposing opinion.
“You should be scratching off more than you buy.”
5️⃣ One thing you are likely to see across the energy sector in the coming future is energy prices staying high, without as much spending on new assets. That means bigger cash flow and higher dividends!
Check out his full analysis:
BONUS PARTNER PORTFOLIO
Find more of Joseph's picks on his Stock Card portfolio
💥 Bonus 💥 We aren’t going to spoil any of his picks for this video, but here’s a tip: his Bowtie Nation Portfolio and all his picks are available on Stock Card! Shhhh, follow it here, quick! ⬇️