Cheap stocks are often cheap because of poor financial performance. But sometimes savvy investors can find diamonds in the rough that can bounce back from past challenges. Ford Motor(NYSE:F) and Walt Disney(NYSE:DIS) are two dirt cheap stocks that enjoy compelling catalysts for long-term success. Let’s dig a little deeper to find out why both companies could make great additions to your portfolio.
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Ford Motor: A more profitable lineup
With a market cap of just under $29 billion compared to 12-month revenue of $118.61 billion, Ford has a price-to-sales (P/S) multiple of 0.24 — lower than fellow automakers General Motors and Tesla, at 0.4 and 16.56, respectively. Ford generates a lot of revenue, but its low top-line valuation makes sense. Sales don’t mean much if they don’t lead to sustainable profits. That’s why the company is working hard to boost its margins by improving
Dividend income can be a great way to boost your portfolio’s value over the long term. Amid a recession, it can also be valuable source of cash flow at a time when returns may not be so strong. And in good times, it can pad your total returns.
Amgen (NASDAQ: AMGN) and Kroger (NYSE: KR) are two companies with shares currently selling at fair prices and that pay better than the 2% yield you can expect from the average S&P 500 stock. Let’s take a closer look at why investors should consider scooping up their shares today.
NEW YORK — Stocks marched higher again on Monday, as Wall Street extended its gains from last week’s rally, the market’s best in three months.
The S&P 500 rose 1.6%, following up on strengthening in stock markets around the world. Big Tech stocks, including Apple and Microsoft, powered much of the gains. Their businesses have proven to be practically impervious to the pandemic, unlike companies that would benefit from a strengthening economy.
The market’s latest upward push came as Wall Street appeared to largely shrug off the latest signs that Democrats and Republicans are no closer to reaching a deal on more aid for the economy, which remains hobbled by the pandemic. Over the weekend, Democratic House Speaker Nancy Pelosi criticized the latest offer from the Trump administration on a stimulus package as “one step forward, two steps back,” while the president’s fellow Republicans called it too expensive.
(Reuters) – Global stocks scaled five-week highs on Monday on hopes that more government stimulus was coming and the world economy was on the mend, while the Chinese yuan retreated from a 17-month high after a policy move over the weekend. Investor optimism that Washington will work through talks that have repeatedly stalled to deliver another round of fiscal stimulus drove major U.S. stock indices to highs last seen in early September. Hopes that the top Wall Street banks will announce a decent set of third-quarter earnings this week that show business activity was not as weak as feared also helped. Slugged by stronger investor demand for risk, the U.S. dollar was pinned near a three-week low and gold, another safe-haven asset, stayed below a three-week high. The U.S. bond market is closed on Monday for Columbus Day. The cheer over the economic outlook and government stimulus did not boost
Social-media stocks are getting a boost from Deutsche Bank analyst Lloyd Walmsley, who raised his rating on
and lifted his price targets on
For Twitter (ticker: TWTR), he went to Buy from Hold, with a price target of $56, up from $36. The call is part of a broader bullish report on the social-media stocks, which he thinks are positioned to benefit from a coming rebound in online advertising demand.
The analyst lifted his price targets on Facebook (FB), to $325 from $305;
Google’s parent (GOOGL), to $2,020 from $1,975; Pinterest (PINS), to $55 from $43; and Snap (SNAP), to $32 from $28. He repeated Buy ratings on all of them.
“We are bullish on the ad names into Q3 results given a continued
SINGAPORE — Stocks in Asia-Pacific mostly advanced on Monday, with investors monitoring the Chinese yuan’s movements.
Mainland Chinese stocks were among the biggest gainers regionally, with the Shanghai composite up 2.64% to close at about 3,358.46 while the Shenzhen component jumped 3.151% to finish its trading day at approximately 13,708.07.
The moves in Chinese stocks came after state media outlet Xinhua reported Sunday that the country “unveiled a new comprehensive reform plan for Shenzhen,” giving local authorities there a “more direct and greater say in business” in areas such as carrying out market-based economic reforms.
Hong Kong’s Hang Seng index also surged 2.2% to close at 24,649.68. Shares of Chinese banks listed in the city soared: China Construction Bank added 5.58%, ICBC was up 5.74% while Bank of China gained 4.18%.
Elsewhere, South Korea’s Kospi rose 0.49% to close at 2,403.73.
Meanwhile, shares in Australia were higher on the day,
The past few years have been difficult for value investors. Technological disruption, combined with low interest rates, have seen high-growth stocks bid up to very high — some would say bubble-like — valuations. Meanwhile, many companies with low or inconsistent growth actually trade at very low valuations. And the gap between the haves and have-nots has been widening for an unprecedented amount of time.
Yet over the long term, the stock market is a weighing machine, not a voting machine, with every company’s value being equal to the present value of all its future cash flows. Given the vast underperformance of value stocks to date and the sky-high valuations of growth stocks, investors may want to give top-quality value stocks a chance as the economy recovers into 2021.
If you jump on the bandwagon of a stock that’s been rising sharply in value, you can run the risk of buying a company that’s overpriced — or one that’s just not a good investment. But if you go against the grain and look for stocks that hordes of investors aren’t crazy about, you’ll be more likely to find some bargains.
Pfizer (NYSE: PFE), ViacomCBS (NASDAQ: VIAC), and Bank of America (NYSE: BAC) are all underperforming the S&P500, which is up by more than 6% this year — but that doesn’t mean they’re bad investments. On the contrary, now could be a great time to buy these companies, as they’re cheap and possess lots of potential growth.
A big reason Pfizer is an attractive buy is that it’s
Wall Street closed out its best week in three months Friday as investors drew encouragement from ongoing negotiations on Capitol Hill aimed at delivering more aid to the ailing U.S. economy.
The S&P 500 rose 0.9%, its third straight gain. The benchmark index ended the week with a 3.8% gain, its strongest rally since early July.
Much of this week’s focus has been on Washington, where President Donald Trump sent markets on a sudden skid Tuesday after he halted negotiations on a support package for the economy until after the election. He appeared to change his mind a few hours
(Reuters) – European stocks posted a second consecutive week of gains on Friday as bumper forecasts from Denmark’s Pandora and Novo Nordisk set a brighter tone for the earnings season, while investors kept an eye out for signs of fresh U.S. stimulus.
The STOXX 600 index <.STOXX> ended up 0.6% to close the week with a gain of 2.1%.
Global equities advanced this week as growing expectations the Democratic party will win U.S. elections next month revived hopes for more economic stimulus there.
In Europe, a string of mergers and acquisitions as well as a rebound in beaten-down sectors like travel & leisure <.SXTP>, banks <.SX7E> and oil & gas <.SXEP> lifted regional markets.
Shares of aircraft engine maker Rolls Royce
have almost doubled in value since Monday, while British Airways owner-IAG
Jewellery maker Pandora
rose 17.2% to the top of STOXX 600 on Friday after hiking its