I have done a lot of value articles lately. This should not be a surprise for those who know that I have deep roots as a value investor. Plain and simple, there is just no sense overpaying for a stock leading to underperformance.
However, the majority of those articles have been focused on deep value…mostly found in riskier small cap and under $10 selections. If that is your cup of tea, then better switch gears to one of these other recent articles:
Top 12 Deep Value Stocks with 50%+ Upside Potential
9 Stocks Under $10 Set to Double
For those who are a touch more conservative. Or concerned that this market seems precariously high when the economic data keeps coming in softer and softer…then this is the stock list for you.
In the end we have boiled down to the 10 most attractive large cap value stocks at this time. Let’s dive into the ingredients used to discover these appealing stocks:
- POWR Rating of A or B: These are the Buy rated stocks which means they are displaying the best momentum at this time. We kicked the lower rated C, D and F stocks to the curb.
- Large Caps only = $10 billion market cap or higher.
- Value = 30% or more upside to average target price.
That last one may need a bit more explanation. My favorite value metric is using the average target price set by Wall Street Analysts. That’s because every industry uses slightly different metrics to determine value.
Some are more about earnings. Some are more about cash flow. Energy companies are more about the net asset value of reserves. And so on.
Focusing on the average target price by Wall Street analysts, who specialize in these industries, is a much better place to find true value then something like PE. Typically low PE stocks are slow growth stocks that rarely will get your heart racing nor lead to significant outperformance.
Let’s now focus in on the types of value stocks you will find here.
Growth investors will turn towards Diamondback Energy (FANG - Get Rating), Alexion Pharmaceuticals (ALXN) and Dropbox (DBX). I actually own shares of DBX in the Reitmeister Total Return portfolio.
Income investors will find that in spades with Telefonica (TEF), Orix (IX) and Orange (ORAN).
To find the ones that are right for you, then dig into the table of the Top 10 large cap value stocks below. Just click on their tickers to discover other important facts like their 4 component grades for that result in their POWR Rating. I am referring to their Buy & Hold Grade, Trade Grade, Industry Rank and Peer Grade.
| Company | Ticker | Price | Target Price | Upside % | Market Cap ($Bil) | Est Growth % | Div Yield % | |||||||||
| Liberty Siri-A | LSXMA | $39.78 | $60.33 | 51.66% | $12.9 | N/A | 0 | |||||||||
| Orix Corp-Adr | IX | $76.71 | $115.30 | 50.31% | $19.7 | 7.21 | 4.41 | |||||||||
| Telefonica S.A. | TEF | $8.33 | $12.20 | 46.46% | $43.2 | N/A | 4.15 | |||||||||
| Altaba Inc | AABA | $69.77 | $100.67 | 44.29% | $36.2 | N/A | 0 | |||||||||
| Diamondback Egy | FANG | $110.83 | $156.58 | 41.28% | $18.2 | 20.65 | 0.68 | |||||||||
| Alexion Pharma | ALXN | $120.82 | $165.67 | 37.12% | $27.1 | 15.5 | 0 | |||||||||
| Orange-Adr | ORAN | $15.03 | $20.60 | 37.06% | $39.9 | 12.42 | 4.76 | |||||||||
| Sarepta Therap | SRPT | $156.10 | $212.29 | 36.00% | $11.6 | N/A | 0 | |||||||||
| China Telcm-Adr | CHA | $47.83 | $63.20 | 32.13% | $38.7 | 8.42 | 3 | |||||||||
| Dropbox Inc-A | DBX | $25.87 | $34.00 | 31.43% | $12.1 | 14.23 | 0 | |||||||||
Also here are links to 3 other popular destinations to make the best use of the POWR Ratings:
Full List of “A ”Rated Strong Buy Stocks– See all the top rated stocks.
About the POWR Ratings– Learn what’s build inside the POWR Ratings that helps find stocks ready to outperform.
Reitmeister Total Return portfolio. This is where Steve Reitmeister employs his 40 years of investment experience to hand select the best POWR Ratings stocks.
FANG shares were trading at $105.63 per share on Wednesday morning, up $1.19 (+1.14%). Year-to-date, FANG has gained 14.29%, versus a 21.07% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of StockNews.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...
