5 Best Value Stocks to Counter an Overvalued Market

It’s no secret that the U.S. stocks are mostly overvalued, which raises concerns of a possible downturn. Given this uncertainty, it will be wise to invest in value stocks. Value investors look for volatile times to pick up stocks at a discount, which are at the same time fundamentally strong to withstand any economic downturn.

Thanks to our new style score system, we have been able to identify five value stocks. Our research shows that stocks with a Value Style Score of ‘A’ or ‘B’ when combined a Zacks Rank #1 (Strong Buy) or #2 (Buy) offer the best opportunities in the value investing space.

Delta Air Lines, Inc. (NYSE:DAL) provides scheduled air transportation for passengers and cargo throughout the U.S. and across the world. The company has a Zacks Rank #1 and a Value Score of ‘A’. Delta Air Lines has a price-to-earnings ratio (P/E) of 9.48, compared with 14.90 for the industry. The company’s estimated growth rate for this year is 3.6%, in contrast to its industry’s projected decline of 4%.

Gulfport Energy Corporation (NASDAQ:GPOR) is an oil and natural gas exploration and production company. The company’s properties are located in the Utica Shale in Eastern Ohio and along the Louisiana Gulf Coast in the West Cote Blanche Bay (WCBB) and Hackberry fields. Gulfport Energy has a Zacks Rank #2 and a Value Score of ‘A’. The company has a price-to-earnings ratio (P/E) of 9.60, compared with 30.80 for the industry. The company’s estimated growth rate for this year is 50.3%, higher than its industry’s projected gain of 35.4%.

Trinseo S.A. (NYSE:TSE) manufactures and markets synthetic rubber, latex binders, and plastic products in all parts of the world, including the U.S. The company has a Zacks Rank #2 and a Value Score of ‘A’. It has a price-to-earnings ratio (P/E) of 9.08, compared with 18 for the industry. The company’s estimated growth rate for this year is 5.4%, in contrast to its industry’s projected decline of 4.8%.

Ternium SA (ADR) (NYSE:TX) manufactures and processes various steel products in all parts of the world, including the U.S. The company sports a Zacks Rank #1 and a Value Score of ‘A’. It has a price-to-earnings ratio (P/E) of 7.79, compared with 14.40 its industry. The company’s estimated growth rate for this year is a solid 27.6%.

Two Harbors Investment Corp (NYSE:TWO) is a real estate investment trust. The company has a Zacks Rank #2 and a Value Score of ‘B’. It has a price-to-earnings ratio (P/E) of 9.15, compared with 9.70 for the industry. Two Harbors’ estimated growth rate for this year is 19.4%, in contrast to its industry’s projected decline of 2.8%.

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