Are we headed to another market crash? It tough to say, but we need to be prepared, and I’ve got a few value stocks that can protect your portfolio during tough times. These companies have crossed the T’s and checked the I’s in terms of my favorite value indicators, including cash flow yield. Each of these stocks can also be considered value momentum. In other words, they are undervalued, but still showing positive bullishness…
To say the market looks murky is an understatement. Last month was rocky as the S&P 500 dropped 3.9%, and things only seem to be getting more volatile from here. We see more coronavirus outbreaks, highlighted by the recent news that President Trump tested positive for the virus. The virus has spread among his family, his staff, and other high-ranking officials in the government. That’s not to mention recent Senators and members of the White House press pool that have tested positive.
The market dropped again on Friday due to investor uncertainty. This year has seen many ups and downs, making it hard to predict where the market will go from here. Adding a few value names to your portfolio may help you feel safer in these times of uncertainty. Here are four companies worth a look: The Timken Company (TKR), Kinross Gold (KGC), Canadian Solar (CSIQ), and Triton International Limited (TRTN).
The Timken Company (TKR)
TKR is a manufacturer of bearings, gear belts, and chain-related products. The company is known as a leader in ball bearings in the U.S. It sells its bearings portfolio through a network of authorized dealers to end-users or original equipment manufacturers. The company recently had a strong quarter, with both earnings and revenues surpassing estimates.
Also, TKR declared a quarterly dividend of 28 cents per share, which makes it 393 straight quarters of paying dividends for the company. That is one of the longest-running dividend records on the NYSE. The company is expanding its portfolio across various markets through strategic acquisitions such as its acquisition of BEKA Lubrication, strengthening its leadership in the automatic lubrication systems market.
TKR has healthy financials, a stable dividend, strong profitability, and is trading below its intrinsic value, making it a solid company worth considering in a volatile market. It is rated a “Strong Buy” in our POWR Ratings system. It holds grades of “A” in Trade Grade, Buy & Hold Grade, Peer Grade, and a “B” in Industry Rank. Those are four components that make up the POWR Ratings. The company is also ranked #5 out of 38 stocks in the Industrial-Manufacturing industry.
Kinross Gold (KGC)
As gold has benefitted this year due to economic uncertainties, KGC provides a nice balance of value and sentiment. The Canadian-based gold producer is one of the top 10 gold mining companies globally, as it produced roughly 2.5 million gold equivalent ounces last year. KGC had 24.3 million ounces of proven and probable gold reserves and 55.7 million ounces of silver reserves at the end of 2019.
Market and economic downturns are a great time to be invested in gold, as it is considered a safe haven. Gold stocks have performed well, as the VanEck Vectors Gold Miners ETF (GDX) is up 33.1% for the year, and the price of gold is at $1908 an ounce, up 25% year to date. KGC has been a strong performer this year as the stock is up 87.6% so far, but still sports a 12.5 P/E. Its Tasiast expansion should continue to drive growth, and the Gilmore project is a low-cost brownfield expansion with limited risk.
Even with value attributes, this company has had robust earnings growth and stable revenue growth. It also has a…
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