Five value stocks to watch amid global economic recovery

Highlights

  • Shares of Lincoln National Corp (NYSE: LNC) rose by 40.82 percent YTD.
  • NRG Energy Inc. (NYSE: NRG) reported revenue of US$1.07 billion in Q2, 2021.
  • The net sales of Viatris Inc. (NASDAQ: VTRS) in Q2 were US$4.56 billion.

Stocks can be categorized into growth stocks and value stocks. While growth stocks typically trade above the average market estimation, value stocks are often undervalued. Thus, value investing is the same as buying items at a discount in a sale.

Here we explore five hot value stocks that may benefit from the ongoing economic revival.

Lincoln National Corp (NYSE: LNC)


It is an American holding company with an interest in the insurance and investment business. Its stock traded at US$67.87 at 9:43 am ET on August 17, down 1.28 percent compared to its closing price on August 16. The Lincoln stock rose 40.82 percent YTD.  

Its market cap is US$12.91 billion, the forward P/E one year is 6.66, and the EPS is US$7.25.

The 52-week highest and the lowest stock prices were US$71.68 and US$29.42. Its trading volume on August 16 was 1,648,290.  

The Pennsylvania-based company reported its Q2 earnings on August 4. Its net income (loss) was US$642 million, or US$3.34 per diluted share, compared to a net income of US$94 million, or US$0.49 per diluted share in the year-ago quarter. The revenue surged around 38 percent YoY to US$4.85 billion.

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Source: Pixabay.

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AbbVie Inc. (NYSE: ABBV)


The stock of the biopharmaceutical firm traded at US$118.79, up 0.32 percent from its previous close, at 9:58 am ET on August 17. The stock value of AbbVie increased by 12.33 percent YTD.  

Its market cap is US$209.72 billion, the forward P/E one year is 9.37, and the EPS is US$3.71. 

The 52-week highest and the lowest stock prices were US$119.15 and US$79.11. Its share volume on August 16 was 8,182,154.  

The worldwide net revenue of the Illinois-based company in Q2 was US$13.959 billion, up 33.9 percent on a reported basis. On a GAAP basis, its diluted EPS was US$0.42, while its adjusted diluted earnings per share came in at US$3.11 in Q2, 2021.

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NRG Energy Inc. (NYSE: NRG)


The shares of this integrated power company traded at US$42.22, down 2 percent from its previous close, at 10:44 am ET on August 17. The NRG stock gained 18.68 percent YTD.  

Its market cap is US$10.37 billion, the forward P/E one year is 8.22, and the EPS is US$4.39. 

The 52-week highest and the lowest stock prices were US$44.44 and US$28.22. Its share volume was 2,063,270 on August 16.  

The Texas-based company reported a net income of US$1,078 million, or US$4.40 per diluted common share in Q2, up by US$765 million YoY. The adjusted EBITDA came in at US$656 million.

Viatris Inc. (NASDAQ: VTRS)


The stock of this specialty pharmaceutical firm traded at US$14.77, down 0.91 percent, at 10:56 am ET on August 17. The VTRS stock decreased by 19.58 percent YTD.  

The market capitalization of the company is US$17.91 billion. Its forward P/E one year is 4.15.

Its 52-week highest and lowest stock prices were US$18.86 and US$12.94. Its share volume on August 16 was 3,990,238.  

The net sales of the Pennsylvania-based corporation in Q2 were US$4.56 billion, up 4 percent YoY. Its US GAAP net loss was US$279 million, while the adjusted EBITDA came in at US$1.68 billion. The US GAAP net cash from operations was US$559 million, and free cash flow was US$470 million.

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Source: Pixabay

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PulteGroup Inc. (NYSE: PHM)


Shares of this home construction firm traded at US$52.89, down 3.17 percent from the previous close, at 11:09 am ET on August 17. The PHM stock rose by 29.4 percent YTD.  

Its market cap is US$13.66 billion, the forward P/E one year is 7.10, and the EPS is US$6.19. 

The 52-week highest and the lowest stock price was US$63.91 and US$39.92. Its share volume was 1,417,222 on August 16.  

The total revenue of the Atlanta, Georgia-based corporation in Q2 surged around 29.5 percent YoY to US$3.35 billion. Its net income came in at US$503 million, or diluted earnings of US$1.90 apiece, compared to US$349 million, or US$1.29 per share in the year-ago quarter.

Bottomline

Value stocks have seen a modest performance so far this year. As the economy improves, value stocks are expected to rise. Of late, the stock markets have been volatile due to several domestic and global factors. Markets are expected to see a strong rebound in 2021 due to the rapid recovery of the US economy from the covid downturn.

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