For years, analysts and portfolio managers have anticipated the return of value stocks as the market has moved higher. And for years they have continued to underperform growth stocks. However, that appears to be changing in 2023, as almost every metric from valuations to earnings for the growth arena has started to roll over in a big way.
Wall Street is perpetually bullish, because the wheels have to keep grinding so the big banks and brokerage firms make money. Top strategists at many of the big firms we cover are stressing that value remains the best place to be until the final bottom for the bear market is put in, and this could happen later this year as the financial contagion brings in more victims and commercial real estate rolls 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. We screened our 24/7 Wall St. value leaderboard for dividend-paying value stocks that will hold up well for the rest of 2023 and found seven top ideas for worried investors. While all are rated Buy across Wall Street, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Citigroup
This top bank stock has rallied nicely off the lows, and Warren Buffett bought $2.5 billion worth of the shares last summer. Citigroup Inc. (NYSE: C) is a leading global diversified financial service company that provides consumers, corporations and governments a broad range of financial products and services.
The company offers services such as consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management. And it operates and does business in more than 160 countries and jurisdictions in North America, Latin America, Asia and elsewhere.
Trading at a still very cheap 7.3 times estimated 2023 earnings, Citigroup stock looks very reasonable in what remains a volatile stock market and in a sector that has dramatically lagged.
Investors receive a 4.83% dividend. Oppenheimer’s $75 price target on Citigroup stock is a Wall Street high. The consensus target is $57.75, and shares closed on Friday at $43.11.
Equity Residential
This apartment-focused real estate investment trust (REIT) owns properties in high-growth U.S. cities. Equity Residential Inc. (NYSE: EQR) is an S&P 500 company focused on the acquisition, development and management of high-quality apartment properties in top U.S. growth markets in and around dynamic cities that attract high-quality long-term renters.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
