For years, analysts and portfolio managers have anticipated the return of value stocks as the market has risen, and for years they have continued to underperform growth stocks. However, that has changed in 2022, as almost every metric from valuations to earnings for the growth arena has started to roll over.
Value stocks are typically defined as shares of a company with solid fundamentals that are priced below those of its peers, based on analysis of price-to-earnings ratio, yield and other factors. Each week, Jefferies offers its top value picks. With earnings reports for the second quarter all but over, and the attention turning back to the Federal Reserve and this week’s Jackson Hole meeting, it may make sense to sell stocks that ripped during the summer rally and head to value ideas.
We screened the Jefferies top value ideas looking for stocks that will hold up in case the summer move higher was indeed a bear market rally. We also looked for the top “strong buy” ideas that paid solid and dependable dividends. The following five hit our screen and all look very timely now. While all are rated Buy at Jefferies, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Ameriprise Financial
This company has been steadily growing assets under management and is a smart choice for investors looking to add financials. Ameriprise Financial Inc. (NYSE: AMP) provides various financial products and services to individual and institutional clients in the United States and internationally.
The company’s Advice & Wealth Management segment provides financial planning and advice; brokerage products and services for retail and institutional clients; discretionary and non-discretionary investment advisory accounts; mutual funds; insurance and annuities products; cash management and banking products; and face-amount certificates.
The Asset Management segment offers investment management and advice, and investment products to retail, high net worth and institutional clients through unaffiliated third-party financial institutions and an institutional sales force. This segment’s products also include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds, variable product funds underlying insurance and annuity separate accounts, as well as institutional asset management products, such as traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds and property and infrastructure funds.
The Retirement & Protection Solutions segment provides variable annuity products to individual clients, as well as life and disability income insurance products to retail clients.
Ameriprise Financial stock investors receive a 1.76% dividend. Jefferies team has a $350 price target, while the consensus target is $303.11. The stock closed almost 3% lower on Monday at $276.99.
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