5 Great Value Options to Buy Right Now

Sometimes, good news can be bad news. Like the unemployment situation that continues to improve. Or a manufacturing economy that continues to expand – with a backdrop where the Federal Reserve has to raise interest rates as inflation continues to rise. The better the economy turns out, the less reason the Fed will have to delay raising interest rates.

– Zacks

Not long ago, no one expected higher rates until the end of the year, or maybe next year. Then all of a sudden, Omicron became something he dreaded and shortly thereafter, he thought it wasn’t so bad. Vacancies continued to be filled and businesses to reopen continued to falter. Inflation became the most pressing problem that the Federal Reserve had to solve.

And the fact that the economy appears to be doing better than expected and has continued to do so since the initial shock is all the more reason for the Fed to act soon. Which means that the market is heading towards a correction.

While this does not seem like the best time to invest in stocks, there are always places to make money in the market. You can do this without risking too much, when you stick to low beta stocks with cheap valuations that also pay dividends. Here are some examples of that-

Nikon Nineveh

Nikon Corporation manufactures and sells optical instruments primarily in Japan, North America, Europe, China and Thailand. The three operating segments include imaging products (cameras and camera lenses), precision equipment (semiconductor lithography systems and semiconductor lithography systems), and healthcare (biological microscopes, cell culture monitoring systems, and large-scale retinal imaging devices).

While there is fundamental strength in each of the markets it serves, stronger pricing in the imaging business and larger volumes in the FPD business are notable. However, the semiconductor lithography systems business continues to be affected by demand drive, likely related to uneven demand as an offshoot of ongoing supply chain issues.

Like most other electronics companies, Nikon continues to see supply chain problems in Asia. But its recent steps to rationalize cost structures have lowered the break-even point, which along with a rebound in demand has allowed the company to raise full-year expectations and increase its profits as well.

Nikon shares are ranked #1 by Zacks and belong to the electronics and manufacturing machinery industry, which is in the top 16% of Zacks-rated industries, indicating upward potential. An empirical value of 0.58 indicates that stocks are relatively less responsive to market fluctuations.

Value grade A or B generally means that the shares are trading for less than their intrinsic value. In this case, Nikon shares are trading at a turnover of 0.82 times and a profit growth of 0.34 times. A price-to-sales (P/S) ratio of less than 1 means that the company’s sales are undervalued and a price-to-earnings growth (PEG) ratio of less than 1 indicates that its earnings growth potential is undervalued. Therefore, Nikon stocks are very safe to hold.

Nikon also pays a dividend of 2.16%.

Computer Task Group CTG

The Computer Task Group provides information and technology services to financial services, healthcare, manufacturing and energy companies as well as to technology service providers in North America, South America, Western Europe and India. Its services include process transformation solutions, technology transformation solutions and process transformation solutions.

The Computer Task Group is undergoing a strategic turnaround in its business focusing on decoupling from the less profitable staffing business and increasing the high margin solutions business to a 50% share of total revenue by 2023. CTG is currently on track to reach this target, having acquired 45.6 % of its revenue in the last quarter ended. Each of these actions improves its profitability. In addition, the market opportunities and companies’ need for digital solutions are large and growing, which leads to huge potential for the company for the foreseeable future.

Computer Task Group shares are ranked second by Zacks and belong to the IT and computer services industry (top 42%), both of which indicate shares are potentially upside. A beta of 0.77 means that the stock will be relatively stable even if the market is not.

Its A score is encouraging and confirmed by P/S 0.36X and PEG 0.64X.

Dividend Yield 2.87%

While Computer Task Group is not paying a dividend, analysts are optimistic about its prospects.

Toyota Motor TM

Toyota Motor Corp designs, manufactures, assembles and sells passenger cars, minivans, and commercial vehicles, as well as related parts and accessories. In addition, the company operates GAZOO.com, an online portal for automotive information. It operates in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa and the Middle East.

One of the world’s leading automakers with many well-known brands such as Toyota, Lexus and Scion, Toyota Motor is set for long-term success. In line with current trends, it plans to invest an additional 4 trillion yen ($35 billion) to double the range of battery electric vehicles (BEVs) from 15 by 2025 to a planned 30 by 2030.

Electric vehicles (EVs) currently account for about 27% of its sales, a number it expects to increase to 40% by 2025 and 70% by 2030. It has entered into a number of partnerships to advance these goals, both for the development of technology for its cars and trucks as well as for building Necessary infrastructure such as hydrogen fuel stations.

Toyota Motor shares carry Zacks No. 1 rating and belong to the auto industry – foreign industry (top 41% of Zacks rated industries). It has a beta value of 0.50, so it is one of the most stable stocks.

Given the value grade A, it’s clear that Toyota is a very safe stock. This is evidenced by a P/S rating of 0.96X and a PEG rating of 0.47X.

Toyota Dividend Yield 1.86%

Mitsui & Co. Mitsui

The Mitsui Group is a global empire with more than 860 subsidiaries and associated companies with operations in a range of industries including the chemical, food, general merchandise, iron and steel, machinery, non-ferrous metals, textiles, energy, real estate and service industries.

The very wide range of industries in which the company operates is the main reason for its stability. On the one hand, this meant that the widespread slowdown as a result of the epidemic affected him severely. But on the other hand, it has meant that despite the uneven recovery in various markets since then, the Mitsui Group is seeing significant overall progress, prompting it to raise its full-year guidance.

Mitsui Group shares are ranked second by Zacks and belong to the distribution and metal products industry (top 5%). The beta value of 0.73 is also encouraging.

Mitsui Group shares have a value grade of A. They are trading at a P/S multiplier of 0.41X and a PEG multiplier of 0.26X.

Its dividend yield is 2.80%.

Dillard’s Inc. DDS

Dillard’s is a large department store chain of branded and private label men’s, women’s and children’s clothing, accessories, and cosmetics, as well as home furnishings. As of July 31, 2021, Dillard had approximately 249 namesake outlets and 31 clearance centers across 29 states primarily in the southwest, southeast, and midwestern United States.

The company also sells its merchandise online at www.dillards.com. Dillard’s also owns a real estate investment trust (REIT). Although at least 90% of their taxable income is distributed, they are not required to pay corporate-level taxes, which helps provide liquidity. Dillard also has a wholly owned captive insurance company, which enables her to manage her risk more efficiently.

Demand for its consumer products remains strong, helping offset global supply chain issues, including shipping delays, disruptions in the transportation network, and increased raw material prices. Strong demand and better inventory management result in lower mass write-downs and improved profitability. Low salary expenses also help. However, competition is still fierce.

Dillard’s stock holds Zacks #1 and belongs to Zacks Retail – the regional department store industry (top 1%). This indicates a strong bullish potential. On the other hand, its beta value of 0.88 means that it will not drop as sharply as the rest of the market, in the event of a correction.

The stocks carry a value grade of A backed by a P/S ratio of 0.76X and a PEG ratio of 0.50.

Its dividend yield is 0.34%.

Price performance for one month

Zacks Investment ResearchImage source: Zacks Investment Research

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Toyota Motor Corporation (TM): Free Stock Analysis Report

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