5 Best Value Stocks to Buy in 2022

KamusKami.com 5 Best Value Stocks to Buy in 2022. Hello buddy, meet again with us here, who this time want to share information about stocks that are suitable for you to buy in 2022. So read on until the end below.

The market’s rocky start to 2022 has breathed fresh life into long-forgotten value stocks. For evidence, look no farther than Warren Buffett’s Berkshire Hathaway (BRK.B).

The S&P 500 is on track to have its worst January performance ever. Despite this, shares in the holding company of the famed value investor are up, outperforming the overall market by a large margin.

Increasing interest rates and the fear of inflation are eroding profit margins for certain firms, as well as consumer confidence in the United States.

Parts of Europe are also shutting down due to the danger of COVID-19’s omicron version. Then there are company structural hazards, such as a tight labor market.

If you’re happy with your previous accomplishments but worried about the future, If you’ve done well in the past but are apprehensive about the future, value stocks may be worth investigating.

We searched for the following in order to determine the top bargain stocks for investors moving into the new year :

  • Strong analyst support, with at least ten Wall Street analysts covering the stock and the great majority offering Buy or Strong Buy ratings.
  • Those whose forward price-to-earnings (P/E) ratios are lower than the broader market (the S&P 500’s forward P/E is now 21.3).
  • Companies having a market capitalization of at least $1 billion.

Here are ten of the greatest value stocks to invest in for the year 2022. Take a closer look at these names if you’re seeking for a little more steadiness as we approach the new year.

1. FedEx

If you’ve been doing a lot of online shopping like many of your fellow Americans over the last few weeks, you’ve probably had your fair share of FedEx (FDX, $241.93) boxes appear on your doorstep.

While many individuals only use this shipping service on occasion, the real fact is that many businesses must write checks to FedEx for shipping services on a daily basis if they want to compete in today’s retail climate.

FedEx is a vital element of the global economy, with about $100 billion in yearly revenue and a run rate of roughly 3 billion items delivered each fiscal year.

That makes it one of the greatest bargain companies to buy in 2022 and beyond, since while the mix of sales may fluctuate depending on consumer preferences, the fundamental requirement to get things from point A to point B will never go away.

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Although delivery is a low-margin operation, profits are far from static. This year, FDX is expected to earn $20.37 per share, representing a more than double-digit growth rate. Furthermore, EPS are expected to increase by another 11 percent or so in the coming fiscal year.

There’s a lot to appreciate about this dominant delivery firm in 2022, especially with a $1.5 billion accelerated stock repurchase plan to offer a tailwind for share prices.

  • Market value: $64.1 billion
  • Dividend yield: 1.2%
  • Forward P/E ratio: 11.6
  • Analysts’ ratings: 17 Strong Buy, 4 Buy, 9 Hold, 0 Sell, 0 Strong Sell
  • Analysts’ consensus recommendation: 1.73 (Buy)

2. Global Payments

Global Payments (GPN, $141.03) is a company that specializes in payment technology and related software.

There’s a “merchant solutions” arm that offers terminal rentals, security services, and digital accounting and reporting, as well as authorization and transfers for more than 140 different types of payments.

The firm may not be well-known, but it has a market value of about $36 billion and was started in 1967, so it has a lot of expertise and strong roots with clients.

It also knows how to adapt and evolve in the face of high-tech disruption, having gone with the flow during banking globalization in the late twentieth century, the e-commerce revolution in the 2000s, and the mobile payment transformation in the 2010s.

But it was a long time ago. What matters most to investors is that GPN’s payment volumes, as well as its profitability and sales, continue to grow.

Analysts predict a 15% increase in top-line revenue this fiscal year, followed by a 10% increase the following year.

Earnings per share are expected to increase even higher this year, by roughly 27% this year and about 20% next year. There’s a much to enjoy here, especially after a huge dividend raise of 28 percent last August.

In terms of share price, things haven’t been looking so bright for GPN lately. Following a pair of dismal guidance issues, the stock has been progressively declining all year.

Many investors may perceive this as a ridiculous overreaction – and a fantastic chance to stake out a position in one of the greatest value companies for 2022 – since the outlook for profitability and sales is still far higher.

  • Market value: $38.3 billion
  • Dividend yield: 0.7%
  • Forward P/E ratio: 15.1
  • Analysts’ ratings: 18 Strong Buy, 8 Buy, 5 Hold, 0 Sell, 0 Strong Sell
  • Analysts’ consensus recommendation: 1.58 (Buy)
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3. MKS Instruments

Despite its unflashy business lines, MKS Instruments (MKSI, $145.45) is one of those plodding and steady industrial firms that value investors frequently flock to.

This top value stock for 2022 develops and manufactures instruments for vacuum sealing, flow and valve technologies, microwave and radio frequency tools, and light and motion controllers, to mention a few.

Its products are employed in a variety of industries, including printed circuit board production, life sciences, and traditional manufacturing.

MKSI also symbolizes the “goldilocks” sized company that many value investors want – not too tiny to be upset by a single bad quarter, but not too huge to be incapable of continuous growth from current levels.

For example, the rebounding global economy aided exceptional revenue growth in 2021, which is expected to be up more than 26 percent if present predictions hold.

Given some of the payouts from other value companies on our list and the current average yield of roughly 1.3 percent for the S&P 500 Index, the dividend is certainly subpar.

However, considering that the current 88 cents per share paid yearly is just around 7% of MKSI’s estimated $12 in earnings next fiscal year, the dividend is very guaranteed to climb.

Here’s the potential for a $1.5 billion acquisition of high-tech equipment maker Atotech, and there’s reason to be optimistic that MKSI will not only retain its own holdings in 2022, but will deliver strong results for investors regardless of the economic environment.

  • Market value: $8.1 billion
  • Dividend yield: 0.6%
  • Forward P/E ratio: 12.1
  • Analysts’ ratings: 8 Strong Buy, 1 Buy, 1 Hold, 0 Sell, 0 Strong Sell
  • Analysts’ consensus recommendation: 1.30 (Strong Buy)

4. Encompass Health

The fact that we all grow old and watch our bodies break down is one of the few definite things that investors can rely on in an unpredictable atmosphere on Wall Street.

Encompass Health (EHC, $61.56) is capitalizing on this trend by providing home health, rehab, and hospice services in hundreds of sites across the United States and Puerto Rico.

The Home Health section of COVID-19 has been especially important in the era of COVID-19, since it strives to keep patients on the path to recovery in their own homes, rather than in hospitals or assisted living facilities.

Not only have many hospitals recently lacked the capacity, but the fear of contracting a highly contagious disease in a confined medical setting has encouraged many Americans with resources to seek out home treatment for their loved ones.

As a result of this trend, revenue is expected to increase by nearly 10% in fiscal 2021. What’s more surprising is that earnings per share are expected to increase by about 50% as demand for these services grows, allowing for greater prices to be paid.

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And that’s only the beginning; substantial growth in both the top and bottom lines is expected to resume in fiscal 2022.

Add to that a highly sustainable 1.8 percent dividend that is just approximately 25% of total profits, and value investors have a lot to like about EHC.

  • Market value: $6.1 billion
  • Dividend yield: 1.8%
  • Forward P/E ratio: 13.8
  • Analysts’ ratings: 9 Strong Buy, 4 Buy, 0 Hold, 0 Sell, 0 Strong Sell
  • Analysts’ consensus recommendation: 1.31 (Strong Buy)

5. East West Bancorp

East West Bancorpor (EWBC, $ 82.61) is open in the United States and the name of a historical holding company, as in the United States and the Great China.

As a result, it is very interesting because it is exposed to a unique growth opportunity due to the economic relations of both sides, but there is a rugged Foundation that expects to a $ 1 billion dollars in the Treasury.

A clear thing does not have a dangerous investment bank that increases $ 50 million beyond $ 50 million beyond the limits of Asian newcomers. Hamdrs Bank, Mortgage, Industrial Company’s Loan Line, heavy equipment finance.

Pasadena, California’s headquarters has about 120 commonality in the same place as Hong Kong and Shanghai, in addition to the typical online operations in Hyundai.

And recently thriving to the east west, recently, with more than 50% of the income of the S & P 500 index, more than 50%.

This is because it is partly more than 10% this year. % next year. However, for the achievement of $ 6.15 until the end of this fiscal year, stock sales are expanding EWBC profitability from $ 4.97 to $ 50 to 50% from $ 50 to 50%.

There is a risk of influence of similar countries similar to China, but there are currently more than $ 6 billion in total assets, with strong standards for Eastern West Bankkonk, which provides pillows with short political or economic stress. I will do it. 2022.

  • Market value: $11.7 billion
  • Dividend yield: 1.6%
  • Forward P/E ratio: 13.4
  • Analysts’ ratings: 8 Strong Buy, 2 Buy, 1 Hold, 0 Sell, 0 Strong Sell
  • Analysts’ consensus recommendation: 1.36 (Strong Buy)

Closing

Okay, friends of Kamuskami.com, that’s all we can convey regarding stock information this time, or more precisely about 5 Best Value Stocks to Buy in 2022.

We hope that the information that we have summarized and shared can be helpful and useful for all of you.

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