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Examples of Value Stocks: Best Value Stocks for 2022

Learn more about value stocks with these examples of value stocks, the diamonds in the rough of the stock market.
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Buy low, sell high. That’s the basic formula for stock market success. In the simplest terms, it’s also the definition of value stocks. Learn more with these examples of value stocks, the diamonds in the rough of the stock market.

What are Value Stocks?

A value stock is one in which its price doesn’t necessarily reflect its fundamental worth. Basically, value stock investors seek bargains.

By investing in a value stock, you are assuming an eventual rise in its stock price. Sooner or later, the market figures out its actual value and the share price goes up. When the market corrects the price, value stocks have the potential to generate revenues.

Value Stock vs. Growth Stocks

Value stocks differ from growth stocks in that the latter are companies with a significantly higher growth rate. While value stocks are in fact undervalued, growth stocks grow faster than the average stock, generating earnings more quickly.

Overall, value stocks are safer than growth stocks. There is more inherent risk in growth stock investing. Growth stocks are usually less established companies considered up-and-coming due to their innovative products or services. Value stocks are generally large, well-established companies. The stock price may have taken a hit because of a down earnings season, negative publicity, or some other factor, but should bounce back in time. Value stocks are more suited to long-term as opposed to short-term investors.

Value Stock Characteristics

Patience is a virtue. That’s something value stock investors must possess because value investing is designed for the long-term. Here’s what to look for when it comes to value stocks. Examples of value stocks characteristics include:

Value stocks usually pay dividends. That is not the case with growth stocks.

Examples of Value Stocks

You undoubtedly recognize the names of these companies behind examples of value stocks. They are some of the top names in their industries, but they may be undervalued.

No. 4 Meta Platforms (NYSE:FB), Formerly Known as Facebook

Meta Platforms, Inc, the company formerly known as Facebook, is the parent company of Facebook, WhatsApp, Instagram and other subsidiaries. These days, it’s also a value stock, as it trades for less than 15 times estimated earnings. That makes it less expensive than about 2/3 of the stocks in the S&P 500 Index.

On April 27, 2022, Meta reported its first quarter results. Total revenue rose 7% from the previous year, but total costs and expenses rose 31%. Income from operations dropped 25%. Year over year, Facebook daily active users were up 4% and monthly active users rose 3%. Revenue growth in the first quarter was impacted by the war in Ukraine.

Meta does not pay a dividend. The stock closed at $212.03 on May 3, 2022. Its 52-week high was $384.33 and the low was $169.

No. 3 Pfizer (NYSE: PFE)

Pfizer was a surprising loser back in 2020. The pharmaceutical giant is now a great example of value stocks. It’s currently supplying the world with Comirnaty, the most utilized mRNA vaccine to prevent severe illness, hospitalization and death from COVID-19. As of May 1, 2022, Pfizer’s cumulative share of doses administered globally increased to 62%. Paxlovid, its antiviral medication used to treat COVID-19, has received regulatory approval or temporary authorization in more than 60 countries.

Pfizer’s first-quarter 2022 results show revenues of $2.7 billion. That reflects 82% operational growth compared to the first quarter of 2021. Revenues increased 2% operationally, excluding contributions from Comirnaty and Paxlovid. The report reaffirmed 2022 revenue guidance for both drugs. Comirnaty revenue guidance is expected to be approximately $32 Billion. That’s despite a 1 billion unfavorable impact from foreign exchange. Paxlovid’s revenue guidance is approximately $22 Billion, with a $0.5 billion foreign exchange unfavorable impact.

However, Pfizer did lower expected earnings per share from its prior estimate of $6.35 to $6.55. It is now estimating EPS of $6.25 to $6.45. Overall, the company projects sales of $98 to $102 billion for the year.

Pfizer’s closing price as of May 3 was $49.29. The 52-week range is $37.96 to $61.71. The annual dividend is $1.60 with a yield of 3.31%.

Keep reading for more on examples of value stocks.

No. 2 Procter & Gamble (NYSE: PG)

When it comes to consumer staples, Procter & Gamble is a behemoth. P&G products run the gamut from Bounty, Charmin, Crest, Dawn, Pampers, Pepto-Bismol, Tampax and dozens of other brands most people have in their households. However, inflation and supply chain issues have affected the multinational corporation and its recent performance was less than stellar.

On April 20, 2022, Procter & Gamble reported its third-quarter fiscal year 2022 with a 7% increase in net sales of $19.4 billion versus the previous year. Diluted net earnings per share were $1.33. That’s an increase of 6% compared to the prior year. The greatest sales drivers are its health care and home care divisions, with beauty and grooming falling short. The company raised its fiscal 2022 outlook in sales growth from a range of 3-4% to a 4- 5% range over the previous fiscal year, making it a great addition to this list of best examples of value stocks.

Procter & Gamble’s current dividend yield is 2.31%. Its 52-week range was $165.35 to $131.94. Its stock price as of May 3, 2022 was $156.21.

No. 1 U.S. Steel (NYSE: X)

U.S. Steel literally built this country’s infrastructure. From buildings to bridges to motor vehicles, U.S. Steel provided the products promoting the growth of the U.S. throughout the 20th century. By the end of the century, however, the rise of lower-cost imported steel proved the death knell of many American steel producers. U.S. Steel was able to buy the assets of National Steel after that company entered bankruptcy in 2002. Overall, it was a challenging time for the industry. Another challenging time occurred more recently, as COVID-19 lockdowns halted construction projects, causing steel prices to drop. The end of the pandemic is having the opposite effect.

U.S. Steel announced it is “transforming” its business model into “a customer-centric, sustainable steel producer with an unmatched value proposition.” Steel prices were high in 2021 and that’s expected to continue in 2022. The war in Ukraine is causing disruptions while the reopening of the economy means heavy demand. Keep in mind that steel prices are always cyclical. They rise and fall in conjunction with the overall economy.

The 52-week range for U.S. Steel is $39.25 to $17.98. As of May 3, 2022, the stock closed at $29.47. U.S. Steel is currently paying a dividend of $0.05 per share.

Value Stock Considerations

These examples of value stocks show that even the best-known companies trade at less than their intrinsic value, making them bargains. While volatility is always a possibility in the stock market, value stocks pose less risk. Think of value investing as an opportunity to buy good stocks at lower prices.

The post Examples of Value Stocks: Best Value Stocks for 2022 appeared first on Investment U.

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Economics

CED Releases Report on Using Census Bureau Data to Boost Child Care & Employment

CED Releases Report on Using Census Bureau Data to Boost Child Care & Employment
PR Newswire
NEW YORK, June 28, 2022

NEW YORK, June 28, 2022 /PRNewswire/ — Today, CED released the fourth and final installment of its unique 2022 series that ana…

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CED Releases Report on Using Census Bureau Data to Boost Child Care & Employment

PR Newswire

NEW YORK, June 28, 2022 /PRNewswire/ -- Today, CED released the fourth and final installment of its unique 2022 series that analyzes the role of paid child care in the economy—including its impact on labor force participation. The new report serves not only as a road map for researchers to build on CED's findings. The report is also useful to policymakers as they consider key questions related to the use of paid child care—especially for women—and its connection to the workforce and economic growth.

Specifically, the new report details how researchers can effectively leverage the underlying data from the Census Bureau's Current Population Survey (CPS), which CED used as the basis for its report series about paid child care. As detailed in the primer, the CPS is a monthly survey of US households jointly sponsored by the Census Bureau and the Bureau of Labor Statistics. As part of its Annual Social and Economic Supplement (ASEC), the survey includes questions about the use of paid child care since 2001 and about such expenditures since 2010.

"Our work uncovered several groundbreaking insights, including that boosting women's labor force participation by one percent—which more paid child care could help achieve—would generate nearly $73 billion of additional income for women," said Dr. Lori Esposito Murray, President of CED. "CED's series examines data more extensively and over a long a time period than any previous work. This fourth and latest report provides a foundation for the research community to discover additional insights, which will help inform public policies that generate more prosperity for the nation's families and the economy more broadly."

The report, The Economic Role of Paid Child Care in the U.S., Part 4: Child Care Data in the Current Population Survey, a Primer, covers five key aspects of the CPS data:

  • The design of the CPS and its Annual Social and Economic Supplement;
  • What specific data the survey captures;
  • The sources from which that data comes;
  • Best practices for using the data; and
  • Likely technical issues which come with the data and how to handle them

The series is the first deep analysis of paid child care usage mined from the CPS data. Findings highlighted from the first three installments in the series include:

  • A high price tag: In 2020, the average income of families using paid child care was $149,926.
  • COVID-19's impact on participation: From 2019 to 2020, children in paid child care dropped by nearly 20 percent.
  • The primary drivers of paid child care usage are labor force attachment, household income, and educational attainment.
  • Despite declining labor force attachment across all genders, men participate in the labor force at a higher rate than women.
  • Paid child care usage is directly impacted by maternal labor force participation trends.
  • A one percent increase in the labor force participation of women ages 18-54 would produce multiple economic benefits, including an additional income of approximately $73 billion.
  • Short-term changes in paid child care correspond with three key factors: labor force participation, actual hiring of mothers, and increased income.
  • Long-term changes in paid child care correspond with three different key factors: maternal labor force, real income, and the overall total of the male and female labor force.

The prior three reports as part of this series focus on 1) the link between paid child care and income; 2) the link between child care access and mothers' workforce participation; and 3) the economic benefits of increasing women's participation in the labor force. More information on the series, which was produced with funding from the W.K. Kellogg Foundation, can be found here.

About CED

The Committee for Economic Development (CED) is the public policy center of The Conference Board. The nonprofit, nonpartisan, business-led organization delivers well-researched analysis and reasoned solutions in the nation's interest. CED Trustees are chief executive officers and key executives of leading US companies who bring their unique experience to address today's pressing policy issues. Collectively they represent 30+ industries, over a trillion dollars in revenue, and over 4 million employees. www.ced.org 

About The Conference Board

The Conference Board is the member-driven think tank that delivers trusted insights for what's ahead. Founded in 1916, we are a non-partisan, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org

 

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SOURCE Committee for Economic Development of The Conference Board (CED)

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Economics

Copado’s Third Annual State of Salesforce DevOps Report Finds Teams Recovered from Last Year’s Dip in Quality but Struggle to Maintain Speed

Copado’s Third Annual State of Salesforce DevOps Report Finds Teams Recovered from Last Year’s Dip in Quality but Struggle to Maintain Speed
PR Newswire
CHICAGO, June 28, 2022

The longest running Salesforce DevOps report shows teams rebounding to p…

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Copado's Third Annual State of Salesforce DevOps Report Finds Teams Recovered from Last Year's Dip in Quality but Struggle to Maintain Speed

PR Newswire

The longest running Salesforce DevOps report shows teams rebounding to pre-pandemic levels for change fail rate and time to recover 

Research shows how high-performing teams use commercial low-code DevOps tools to release more often, recover faster and achieve business value

CHICAGO, June 28, 2022 /PRNewswire/ --  Copado, the global leader in low-code DevOps, today released the findings from its third annual "State of Salesforce DevOps" report, which collects data and insights on the key trends in low-code software delivery. Based on thousands of data points collected from over 450 global Salesforce customers using DevOps to accelerate and improve the speed and quality of their implementations, the report highlights the improvement in quality, examines the possible causes of the decline in velocity, identifies the qualities of the teams that are thriving, and makes recommendations on how teams can maximize their development resources.

Adopting key principles from DORA, the report analyzed performance across Salesforce teams in terms of the dual goals of innovation velocity and release quality and security. Using the four metrics of lead time for change, deployment frequency, change failure rate and mean time to recovery, the report categorized respondents into four performance profiles that can be used to identify and measure the characteristics of both high and low performance.

Key takeaways from the Copado 2022 State of Salesforce DevOps report include:

Quality-first DevOps is increasing

The 2021 report found a significant reduction in quality and stability as evidenced by increased change failure rate and mean time to recover. Copado attributed that to the 2020 COVID pandemic and the ensuing disruption to team workflows. In 2022, that trend seems to have reversed, with stability returning to the 2019 levels.

Teams showed 8x shorter time to restore (96 hours in 2021 compared to 12 hours in 2022) and reported 50% lower change fail rate (38% in 2021 compared to 20% in 2022). In 2022, the change failure rates and recovery times were roughly the same as in 2019.

Salesforce teams tapped the brakes in 2022

Teams may have overcompensated for stability over the last year by reducing their velocity. This year's report shows a reduction in deployment frequency which dropped by half compared to the two previous years, from 475 per year to 230 per year on average. Elite performers continue to release faster with an average lead time of 8 days, compared to 50 days for low performers. Since 2019 the percentage of teams with lead times less than a week has declined from 69% to 49% and the number of users able to deploy on demand has shrunk from 23% to 10%.

Overall, compared to low performers, elite performers have:

  • 4x shorter lead times
  • 46x more deployments, 94% of elite performers release at least weekly vs. only 13% of low performers
  • 5x fewer production failures
  • 8x faster time to recover, less than four hours for elite performers and more than 18 days for low performers

"The last three years of research has taught us a lot about the challenges that Salesforce teams face and where they excel," said Andrew Davis, senior director of research and innovation at Copado. "Last year, the report showed the impact of a global pandemic and shift to remote work on the ability to ensure quality and stability. This year we've seen quality and stability trends bounce back. This points to the resilience and commitment of the community of Salesforce developers, admins, and business users who find a way. We've reached a point in time where the level of customization that can be built into the Salesforce platform makes it necessary to adopt DevOps tools and practices to manage software delivery well."

Salesforce teams continue to grow in size and complexity
For the second year in a row, Copado found that Salesforce teams are growing. This year, 46% of respondents report that their teams have grown, 41% have remained steady and just 13% report their team decreased in size. The continued growth in the size of development teams means a continued increase in the complexity of the Salesforce orgs they are building.

For the third year in a row, Copado found a strong correlation between team size and lead time. This year, there was also a correlation between team size and change failure rate and time to recover. All of these metrics worsened as teams grew in size.

Traditional use cases for low-code application development have been largely for internal business applications with limited business impact. In 2022, 72% of respondents use Salesforce for building internal applications, but now 60% are using the platform to build business-critical apps, and 66% are using the platform to build customer-facing apps, while 37% are building all three types. A much more rigorous release process should be applied to customer-facing and business-critical applications than needs to be applied to internal business apps. It should also be noted that these types of apps are usually much more sophisticated than internal apps.

Performance improves with commercial low-code DevOps tools
Low-code application development on Salesforce is the fastest way to translate ideas into innovation, but without enterprise software delivery capabilities in place, the power of low-code is undone by quality issues, manual processes and orchestration challenges. The report found that teams using DevOps tools designed specifically for Salesforce release 50% more frequently than teams using build-your-own platforms like Jenkins.

Copado also found that those who are highly involved in Enterprise Agile Planning (74% of respondents) and also use a commercial Salesforce tool for DevOps are 39% more likely to work at a company that is exceeding its goals. Given the current economic environment and growing importance of proving ROI and value realization for technology investments, teams that are investing in process improvements are better able to ensure that they're getting the greatest benefit.

Change failure rates can be reduced with automated testing
Teams need to shift to faster, more automated ways of ensuring quality. Automated testing of Salesforce applications is an opportunity area now that the Salesforce platform is used more often for external customer-facing and business-critical applications. Yet if there is any testing in the development process, manual testing is the most common method. One-third of Salesforce development teams use manual testing, 29% have minimal to no testing and 21% automate critical tests, while only 19% are practicing test-driven development.

The full report with a forward written by Peter Coffee, vice president of strategic research for Salesforce, can be found at: https://www.copado.com/devops-hub/ebooks/2022-state-of-salesforce-devops-report

Methodology
Copado surveyed over 450 executives, managers, and members of Salesforce delivery teams to learn about their development lifecycles. Conducted in April 2022, the survey included companies ranging in size from one employee to more than 1 million employees. Sixty percent of these companies have more than 500 Salesforce users. The goal was to better understand the challenges of innovating on the Salesforce platform. The analysis was done on the Tableau Analytics platform including data visualization, cross tab analysis, and core BI. 

Salesforce and others are among the trademarks of salesforce.com, inc.

Follow Copado

LinkedIn: https://www.linkedin.com/company/copado-solutions-s.l/

Twitter: https://twitter.com/CopadoSolutions

Blog: https://www.copado.com/learning/blog/

About Copado
Copado is the leading DevOps and testing solution for low-code SaaS platforms that run the world's largest digital transformations. Backed by Insight Partners, Salesforce Ventures and SoftBank Vision Fund, Copado accelerates multi-cloud, enterprise deployments by automating the end-to-end software delivery process to maximize customers' return on their cloud investment. More than 1,000 companies rely on Copado to drive digital transformation with speed, quality and value including Boston Scientific, Coca-Cola, Fair Trade, Linde, MassMutual, Schneider Electric and Shell. Copado DevOps 360™ processes over 50 million DevOps transactions per month and is rated with a 100% score on the Salesforce AppExchange. More information can be found at: http://www.copado.com.

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SOURCE Copado

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Government

China Stocks Outperform On Unexpected COVID Shift

China Stocks Outperform On Unexpected COVID Shift

Update (0920ET): China’s move to ease quarantine rules for inbound travelers from three…

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China Stocks Outperform On Unexpected COVID Shift

Update (0920ET): China's move to ease quarantine rules for inbound travelers from three weeks to just one week has bolstered sentiment for Chinese equities. 

Bullish calls are rising on Chinese stocks as the CSI 300 Index inches near a bull market. 

Fred Hu, the founder of China-based investment firm Primavera Capital Group, told Bloomberg that he believes Chinese tech firms have turned the corner after a $2 trillion rout sparked by Beijing's yearslong technology crackdown. 

NASDAQ Golden Dragon China Index plunged more than 76% since its peak in early 2021, coinciding with Beijing's crackdown start. The index hit a low in March and has since bounced 67% -- because the crackdown fears show signs of softening. 

Hu believes "this could be the beginning of a new era for China tech ... There's a lot of value to be discovered," adding that investors still need to be selective in picking stocks. 

Adding to support is the People's Bank of China's accommodative monetary policy, which is the opposite of global central banks that aggressively tighten interest rates to prevent the surge in inflation from turning into dreaded 1970s-style stagflation. Today's quarantine reduction news, tech crackdown abating, and PBOC easing have produced a more optimistic outlook for Chinese stocks. 

However, a lingering threat of a US slowdown could be problematic for all investors. 

Lorraine Tan, director of equity research at Morningstar, told Bloomberg TV: "Even if we do get some China recovery in 2023, which could be a buffer for this region, it's not going to offset the US or global recession."

* * *

China unexpectedly slashed quarantine times for international travelers, to just one week, which suggests Beijing is easing COVID zero policies. The nationwide relaxation of pandemic restrictions led investors to buy Chinese stocks.

Inbound travelers will only quarantine for ten days, down from three weeks, which shows local authorities are easing draconian curbs on travel and economic activity as they worry about slumping economic growth sparked by restrictive COVID zero policies earlier this year that locked down Beijing and Shanghai for months (Shanghai finally lifted its lockdown measures on May 31). 

"This relaxation sends the signal that the economy comes first ... It is a sign of importance of the economy at this point," Li Changmin, Managing Director at Snowball Wealth in Guangzhou, told Bloomberg

At the peak of the COVID outbreak, many residents in China's largest city, Shanghai, were quarantined in their homes for two months, while international travelers were under "hard quarantines" for three weeks. The strict curbs appear to have suppressed the outbreak, but the tradeoff came at the cost of faltering economic growth. 

The announcement of the shorter quarantine period suggests a potentially more optimistic outlook for the Chinese economy. Bullish price action lifted CSI 300 Index by 1%, led by tourism-related stocks (LVMH shares rose as much as 2.5%, Richemont +3.1%, Kering +3%, Moncler +3%). 

"The reduction of travel restrictions will be positive for the luxury sector, and may boost consumer sentiment and confidence following months of lockdowns in China's biggest cities," Barclays analysts Carole Madjo wrote in a note. 

CSI 300 is up 19% from April's low, nearing bull market territory. 

Jane Foley, a strategist at Rabobank in London, commented that "this news suggests that perhaps the authorities will not be as stringent with Covid controls as has been expected." 

"The news also coincides with reports that the PBOC is pledging to keep monetary policy supportive," Foley pointed out, referring to Governor Yi Gang's latest comment. 

She said, "this suggests a potentially more optimistic outlook for the Chinese economy, which is good news generally for commodity exporters such as Australia and all of China's trading partners." 

Even though the move is the right step in the right direction, Joerg Wuttke, head of the European Chamber of Commerce in China, said, "the country cannot open its borders completely due to relatively low vaccination rates ... This, in conjunction with a slow introduction of mRNA vaccines, means that China may have to maintain a restricted immigration policy beyond the summer of 2023." 

Alvin Tan, head of Asia currency strategy in Singapore for RBC Markets, also said shortening quarantine time for inbound visitors shouldn't be a gamechanger, and "there's nothing to say that it won't be raised tomorrow." 

Tyler Durden Tue, 06/28/2022 - 09:20

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