For Immediate Release
Chicago, IL – May 17, 2023 – Today, Zacks Investment Ideas feature highlights Unum Group UNM, NXP Semiconductors NXPI and Graphic Packaging Holding Company GPK.
3 Stocks that Can Entice Valuer Investors
Value investing is centered around jumping on stocks trading at a discount, with the idea that the market will eventually 'catch up' and recognize their true value, which can lead to serious gains.
After all, who doesn't love a good deal?
And the strategy can become even more lucrative when adding in the Zacks Rank.
Three top-ranked stocks trading at enticing valuation levels – Unum Group, NXP Semiconductors and Graphic Packaging Holding Company – could all be worthy additions to any value-focused investor's watchlist.
Let's take a closer look at all three.
Unum Group provides disability insurance, long-term care insurance, life insurance, and employee-paid group benefits and related services. The stock is presently a Zacks Rank #1 (Buy), with shares yielding a solid 3% annual dividend.
Shares currently trade at a 6.2X forward 12-month earnings multiple, just marginally above the five-year median and well below the Zacks Finance sector average.
Further, the company's current forward 12-month price-to-sales ratio works out to be 0.7X, again well beneath the Zacks sector average.
UNM carries a Style Score of "A" for Value.
And to top it off, the company carries a respectable growth profile, with earnings forecasted to climb 15% on 3% higher revenues in its current fiscal year (FY23). And in FY24, earnings and revenue are projected to witness growth of 5.3% and 3.3%, respectively.
NXP Semiconductors, a Zacks Rank #2 (Buy), is a global semiconductor company providing high-performance mixed signal and standard product solutions used in various applications. Shares currently yield 2.4% annually, with the company's payout growing by an impressive 40% over the last five years.
NXPI's current 12.3X forward 12-month earnings multiple sits well beneath the 16.1X five-year median, with the value also reflecting a 47% discount relative to the Zacks Computer and Technology sector.
The stock carries a Style Score of "B" for Value.
Graphic Packaging is a leading provider of paperboard packaging solutions for various products. Analysts have raised their earnings estimates across the board, helping land the stock into a Zacks Rank #1 (Strong Buy).
GPK's 8.5X forward 12-month earnings multiple is a fraction of the 12.9X five-year median and the Zacks Industrial Products sector average.
In addition, the forward 12-month price-to-sales ratio presently sits at a small 0.8X, nearly in line with the five-year median and again nowhere near the Zacks sector average.
Value investors are always looking for deals, expecting the rest of the crowd to eventually catch onto the discounts and lead to significant gains.
And when you pair this strategy with the Zacks Rank, which is focused on earnings estimate revisions, it's much easier to find mispriced stocks with great near-term potential.
All three stocks above – Unum Group, NXP Semiconductors and Graphic Packaging Holding Company – could be watchlist considerations.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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