2020 has been a banner year for growth stocks, with a particular emphasis on technology growth stocks. There is a good chance the pendulum will swing in the opposite direction in 2021, with money shifting back toward value stocks.

Most experienced investors agree growth stocks are overvalued. However, putting money in the bank is simply not an option. Aside from bonds, CDs and money market accounts, stocks are the only reasonable place to park cash.

If money gradually moves away from overvalued growth stocks toward value stocks, the following three publicly traded companies should move higher in the year to come: Whirlpool Corp. (WHR), Synnex Corporation (SNX) and Group 1 Automotive (GPI).

Whirlpool Corp. (WHR)

Investors should have no qualms about investing in WHR. This value stock will generate considerable attention as money moves out of high-priced tech stocks to safe havens in the potentially tumultuous year ahead. WHR is one of the world’ stop appliances manufacturers. The company’s products are made in more than a dozen countries and sold across the globe. WHR makes refrigerators, laundry appliances, cooking appliances freezers and additional household appliances. WHR also markets some of the industry’s top appliance brands such as Maytag, KitchenAid, Amana, Brastemp, Consul, JennAir, Bauknect and Indesit.

Check out WHR’s POWR Ratings components and you will find it has “A’s” for its Trade Grade, Industry Rank, Peer Grade and Buy & Hold Grade. The stock is ranked 6th of nearly 70 in the Home Improvement & Goods industry.

WHR has a reasonable forward price to earnings ratio (P/E) of 16. WHR’s latest quarterly reports beat Wall Street’s estimate. The demand for WHR products is on the rise as people spend more time at home, cooking, cleaning, etc.

Buy this blue-chip stock, hold it through the pandemic, and you should make money.

Synnex Corporation (SNX)

SNX operates in the business process services space, providing a litany of logistics, distribution and integration services for companies in the tech industry. SNX also provides outsourced services to improve customer engagement across a wide range of industries. All in all, SNX had nearly $24 billion in revenue this past fiscal year.

Take a look at SNX’s POWR Ratings and you will find the company has “A’s” in the Peer Grade, Buy & Hold Grade and Trade Grade components. SNX also has a “B” grade in the Industry Rank POWR Rating component. SNX is ranked first of 54 publicly traded companies in the Technology – Services space.

TipRanks reports the average analyst price target for SNX is $165.60, meaning the stock has more than 11% potential upside. SNX has a surprisingly low forward P/E ratio of 12.15, indicating the stock is undervalued at its current trading price of $148.91.

The bottom line is businesses rely upon the equipment SNX provides to empower employees to work from home and also in the office. This is precisely why SNX generates in excess of a billion dollars in quarterly operating cash flow. SNX should attract even more investor dollars as we transition to the new year.

Group 1 Automotive (GPI)

Automotive retailers have a chance to rake in the cash in 2021 as the economy and life return to normal. Used car values are reaching all-time highs. GPI sells both used and new vehicles throughout the United Sates, the UK and Brazil. The company also sells light trucks, provides automotive financing, service contracts and insurance.

GPI even provides vehicle repair and maintenance services, aftermarket products and replacement parts. In short, GPI does a little bit of everything automotive-related. As long as an effective vaccine is available in the year ahead, car sales should boom as people break quarantine and segue back to work and life as it used to be.

GPI is a POWR Ratings star with “A” grades in the POWR Rating Trade Grade, Peer Grade and Buy & Hold Grade components. GPI is ranked in the top half of Auto Dealers & Rentals stocks.

The top analysts are bullish on GPI, setting a price target of $141.67 for the stock. If GPI reaches this level, it will have popped by more than 15%. GPI has a low forward P/E ratio of 8.01. Add in the company’s solid third-quarter earnings and the case for a continued bull run becomes even stronger. Look for GPI to move toward $150 in 2021.

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WHR shares were trading at $202.63 per share on Tuesday morning, up $3.75 (+1.89%). Year-to-date, WHR has gained 41.12%, versus a 8.41% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...

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