5 Value Stocks to Buy Trading at a Massive Discount

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  • Value stocks can be an excellent investment opportunity for investors who have a long-term horizon. They may not have a high return on investment when compared to other types of stocks, but they will be less volatile than these other types of investments.
  • Best Buy (NYSE:BBY) — Best Buy operates on a unique business model that includes both physical retail stores and an online store. This allows for customers to have access to all their desired products no matter where they are located or what time it is.
  • Adobe Systems (NASDAQ:ADBE) — Adobe Systems is a company based on creating and selling computer software. They are well-known for their creative desktop and online software, which make them even more prominent in the world of remote work.
  • Grupo Televisa (NYSE:TV) — Grupo Televisa is a Mexican multimedia mass media company. It is the largest producer of Spanish-language content in the world.
  • Moody’s (NYSE:MCO) — Moody’s is a global leader in credit rating and research. It provides credit ratings on debt instruments and other securities, including government bonds and corporate debt.
  • United Rentals (NYSE:URI) — United Rentals is an American company that provides equipment and tools to the construction and industrial sectors. As America gears up for billions of infrastructure spending, this company is in a great position to benefit.
Value Stocks - 5 Value Stocks to Buy Trading at a Massive Discount

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Value stocks have a low price-to-earnings ratio and high dividend yield. They are typically traded at a discount to the overall stock market. The sharp correction of the markets has only exacerbated the situation.

Value investing is a strategy for investing in stocks that have been around for many years and are based on the idea that you should buy a stock when trading at or below its intrinsic value.

Value investors believe in buying stocks of companies with good fundamentals, such as high dividend yield, low debt, and increased earnings growth.

These stocks may trade at a lower price than other stocks because they are not as popular or well-known as other companies.

BBY Best Buy $82.25
ADBE Adobe Systems $423.20
TV Grupo Televisa $9.94
MCO Moody’s $303.54
URI United Rentals $295.58

Value Stocks: Best Buy (BBY)

Best Buy (BBY) store front
Source: Ken Wolter / Shutterstock.com

Best Buy (NYSE:BBY) is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota. It operates in the United States, Mexico, and Canada.

In 1966, Richard M. Schulze and his partner John W. Schulze opened Sound of Music stores in St. Paul and Minneapolis to sell records, tapes, and compact discs to a newly emerging market of teenagers interested in rock music and other genres. In 1983, the company expanded nationwide with a new store format called Best Buy Co., Inc., later changed to just “Best Buy” in 1985.

Best Buy is the first name in consumer electronics for many people. And it has been around for 50 years now. During this time, Best Buy has established itself as one of the best-known brands in America and has grown to be a multi-billion dollar company.

However, its recent financials leave much to be desired. Due to weak results, the stock has lost considerable market value. Therefore, the time to buy is now.

Adobe Systems (ADBE)

Adobe logo on the smartphone screen is placed on the Apple macbook keyboard on red desk background. ADBE stock.
Source: Tattoboo / Shutterstock

Adobe Systems (NASDAQ:ADBE) was founded in 1982 by John Warnock and Charles Geschke, who had been at Xerox PARC (Palo Alto Research Center).

It is a company based on creating and selling computer software. They are well-known for their creative desktop and online software, making them even more prominent in remote work.

Adobe is a company that has been very successful over the years. It has been profitable for the past 25 years. And it is still one of the most valuable companies in the world.

It is not hard to see why Adobe has been so successful — it offers a wide range of products and services used by people worldwide. Its products include Photoshop, Illustrator, Acrobat, Dreamweaver, After Effects, Premiere Pro, and many more.

Last year, Adobe’s revenues reached $15.79bn — an increase of 23% from the previous year. GAAP operating income grew 37% year over year. Adobe generated a record $7.23 billion in operating cash flows and repurchased 7.2 million shares of its stock.

Overall, the company did very well last year and will continue to do so. The tools are becoming more important as people are working more remotely.

Value Stocks: Grupo Televisa (TV)

a room filled with television screens
Source: Tooykrub / Shutterstock.com

Grupo Televisa (NYSE:TV) is the largest media company in Latin America. It is a leading producer of content in Spanish and Portuguese, with over 200 channels in Mexico and Brazil.

Since its beginnings, Grupo Televisa SAB has been at the forefront of innovation in digital media. It has used its vast resources to develop new technologies that are now commonplace, such as high-definition television, 3D television, and virtual reality.

In recent years, Grupo Televisa SAB has also started to focus on AI technologies that can enable their content creators to create better content for their viewers.

In the U.S., analysts are always concerned about cable subscribers. All of the talks surround streaming these days and how it will revolutionize content creation. However, it is also important to consider that many places are still seeing cable grow. And Mexico is one such area.

For example, Grupo Televisa’s net sales increased 6.3% from 2020 to 2021. That kind of revenue increase is rare in the U.S. market, thereby making the company a great pick among value stocks.

Moody’s (MCO)

A Moody's Corporation (MCO) sign in silver.
Source: Daniel J. Macy / Shutterstock.com

Moody’s (NYSE:MCO) was founded in 1909 by John Moody, an American banker, and economist. It provides credit ratings for public and private companies.

Moody’s provides ratings, research, and risk analysis for debt securities, derivatives, equities, and other financial markets. They are also involved in corporate actions such as mergers and acquisitions.

Moody’s is considered one of the top three credit rating agencies globally, along with Standard & Poors and Fitch Ratings. The best thing about Moody’s is the lack of competition. In addition to its credit ratings, the company is now offering AI-focused financial services. That is helping improve the number of offerings and diversifying the company’s revenue streams.

Value investors are always looking for recurring revenue stocks, and Moody’s fits the bill.

Value Stocks: United Rentals (URI)

A magnifying glass zooms in on the website for United Rentals (URI).
Source: Casimiro PT / Shutterstock.com

United Rentals (NYSE:URI) is a leading provider of rental equipment. They offer more than 3300+ equipment and tool classes to customers in over 1,000 locations across North America.

The infrastructure sector is one of the most important sectors in the U.S. economy, and it has been on the rise for a while now. For example, United Rentals is poised to win big with President Joe Biden’s partisan $1 trillion infrastructure plan. With construction jobs rising, this new bill is an absolute godsend for United and businesses like them.

We are seeing these strong industrial tailwinds in the company’s results. In the first quarter, revenues are up by over 30% and have broken records. Net income for the quarter increased 80.8% year-over-year to a first-quarter record of $367 million, while the net income margin increased 460 basis points to 14.5%. The company broke first-quarter net income records in both cases. Adjusted EBITDA increased 30.5% annually and reached a record $1.139 billion this quarter.

The company also upped its guidance on the positive results. “I want to frame my comments around one word: demand,” President and CEO Matt Flannery said, “2022 is shaping up to be a year of record demand for our services and this is the driving force behind the strong first quarter results we reported, and it underpins our decision to update our guidance.”

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/05/5-value-stocks-to-buy-trading-at-a-massive-discount-bby-adbe-tv-mco-uri/.

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