SPECIAL REPORT The Top 7 Stocks for 2024

3 Value Stocks You’ll Regret Not Buying Soon: November 2023


  • These 3 value stocks are worth adding to investors’ portfolios now.
  • Petrobras (PBR): Brazil’s state-run oil and gas giant has raised its oil production expectations.
  • Frontline (FRO): OPEC production cuts could continue to power FRO’s revenue growth in 2024.
  • JPMorgan & Chase (JPM): America’s largest bank only trades at 9.6x forward earnings.
value stocks - 3 Value Stocks You’ll Regret Not Buying Soon: November 2023

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The S&P 500 and Nasdaq are amid another rally after entering “correction territory” in October. This week’s Consumer Price Index (CPI) report, which indicated headline U.S. inflation essentially stalled in October while the “core” consumer price index increased only 0.2% from September, is exciting traders and equities investors alike. However, there are still some undervalued value stocks out there that deserve the attention of value investors.

Without further ado, below are three value stocks investors should consider buying soon.

Petrobras (PBR)

3D rendered two black oil barrels on digital financial chart screen with yellow numbers and rising, green, falling, red arrows on black background. Oil stocks
Source: stockwars / Shutterstock.com

Brazil’s state-run oil and gas company, Petrobras (NYSE:PBR), has not let investors down yet this year and remains a top emerging market performer. Shares have risen more than 80% since the start of 2023, and surprisingly, Petrobras’s valuation is still relatively cheap.

PBR trades at about 3.7 times forward earnings, and the stock could be primed for strong growth in 2024.  

Petrobras recently raised its projection for oil and gas production this year, and the firm lifted its 2023 oil and gas output to 2.8 million barrels of oil equivalent per day (boed) from 2.6 million boed previously. As war rages in the Middle East and OPEC production cuts remain in place, oil prices could climb soon, and Brazilian oil companies could continue to pick up the tab on providing oil to the rest of the world. Petrobras will stand to benefit from these trends, and so will its shareholders.

Frontline (FRO)

Aerial front side view of oil tanker ship sailing on open sea, Imperial Petroleum (IMPP) operates oil tankers
Source: Igor Karasi / Shutterstock.com

Speaking about oil markets, another value stock investors should consider adding to their portfolio is oil tanker company Frontline (NYSE:FRO). The company benefits from the high demand for oil transportation and the low operating costs of its modern and fuel-efficient 67 vessels.

Like Petrobras, as the Middle Eastern oil producers have cut production, oil tankers have increasingly traveled across the Atlantic Ocean to ship crude from Brazil, the United States, and Guyana to Asian countries. These longer distances have pushed up “ton-miles,” or the amount of crude shipped and the space, and as a result, revenue.

If OPEC production cuts remain in place through much of 2024, Frontline could continue to increase revenue and earnings.

JPMorgan (JPM)

Chase Bank logo and storefront
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The largest U.S. bank by assets is a leader in consumer banking, investment banking, asset management, and wealth management. JPMorgan (NYSE:JPM) has a diversified and resilient business model that generates consistent profits and dividends. In the third quarter of 2023, JPMorgan beat Wall Street’s revenue and earnings estimates.

In particular, the nation’s largest bank reported $40.7 billion in revenue, up 21.5% from the same period last year, and $13.5 billion in net income, up 35.1% Y/Y.

The recent CPI report alluded to in the introduction section could signal the U.S. Federal Reserve is done with interest rate hikes, which would prevent the economy from falling into recession territory. As long as the economy performs, banks like JPM will benefit. JPM’s price-to-earnings ratio trades around 9.6 times forward earnings, making it a solid value stock in the financial sector.

On the date of publication, Tyrik Torres 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.

Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.

Article printed from InvestorPlace Media, https://investorplace.com/2023/11/3-value-stocks-youll-regret-not-buying-soon-november-2023/.

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