With the S&P 500 hitting an all-time high in August 2021, all signs point to economic recovery and a more “expensive” stock market. While the numbers make it trickier to invest in stocks right now, that doesn’t make it a bad idea. The hard part is looking for bargains, the best value stocks to buy right now, and take it from there. But then again, “hard” is not synonymous with “impossible.”
Here are the top 5 value stocks to invest in and watch out for the rest of 2021, in no specific order:
Lockheed Martin (LMT)
Many experts call LMT stocks “undervalued,” which sounds like a negative, but it’s like a voice from heaven for stock investors. Lockheed Martin is a legitimate 12-figure company that rakes in over $1 billion in sales per quarter. However, they are currently trading at a forward Price-to-Earnings ratio of 13.61, less than half of the S&P 500’s PR ratio (currently at 35.17).
If you want to be reminded of LMT’s portfolio, here’s a quick rundown:
It is the largest pure-play defense contractor.
It has a space business with sales of about $12 billion annually
LMT is also in the commercial aviation business.
… and so much more! If you do not see LMT as one of the best value investing stocks right now, you are either not getting it or simply stubborn. Lockheed Martin gives its investors many ways to win, with an almost 0% chance of losing unless something catastrophic comes up.
Fiverr International (FVRR)
Fiverr is a company that offers a platform that connects freelancers to employees. Since it is relatively new, Fiverr also presents the biggest opportunity for growth, which is essentially music to every investor’s ears. Of course, putting money on the new players on the block is a little risky, and with people getting out of the house more right now, the rest of the year’s outlook for FVRR is not too good. However, if you are thinking about this play long-term, it could reward you handsomely in the long run.
You may have heard about Novavax because of the current pandemic. Novavax is a clinical-stage vaccine company responsible for developing experimental vaccines for Ebola, influenza, and other infectious diseases. Their latest work could be their ticket to growth, and perhaps you could be in for the ride.
Last week, Novavax announced that their vaccine is now being studied in OCTAVE-DUO to gauge the safety of a third coronavirus vaccine dose to persons with compromised immune systems. Because of health concerns surrounding the coronavirus and other communicable diseases, Novavax could potentially be the best value stock to invest in at this point.
Bank of America Corp. (BOC)
Here is the one thing you need to know about BOC: It is trading at only 14 times earnings, which is an extreme value no matter how you slice it. And of course, it doesn’t hurt knowing that the Bank of America is one of the world’s leading financial institutions with a $350 billion market cap. Interest rates will rise soon if the economy is recovering, and you should meet that development by owning shares with a top-tier institution in the finance sector.
The Walt Disney Company (DIS)
While there are obvious advantages to buying the best value stock in a new company, there is considerably less risk if you’re looking to invest in the so-called blue-chip stocks. Walt Disney is one of those blue-chip companies.
The company has taken a massive hit because of the coronavirus pandemic, but most of its businesses are back again, including the theme parks and cruise lines. Still, newer Covid variants pose a serious threat to their operations, but Walt Disney’s video streaming services are doing well, with 103.6 million new subscribers in the 2Q of 2021.
The real potential of Disney won’t be revealed until we get rid of the pandemic, but investors should take advantage of the situation. The company has done well given the circumstances, but can you imagine what will happen if the pandemic is over? That should be enough to make WIS one of the 5 best value stocks and perhaps the best value stock to buy right now.