1 No-Brainer Value Stock to Buy Right Now
The stock market, like pretty much every other asset class, is as frothy as ever.
The S&P 500 looks poised to cross the 4,000 milestone any day now and is trading at a price-to-earnings ratio of 40, nearly as high as it was at its peak during the dot-com era. Both recovery stocks and pandemic winners are looking dearly priced, as even stocks that were hit hard by the pandemic, like Macy's and Live Nation Entertainment, are trading above pre-pandemic levels. Pandemic winners like Wayfair, meanwhile, are also trading at all-time highs even as they face obvious headwinds as they lap a pandemic-fueled surge last year.
Value stocks, in other words, aren't easy to find. However, there's one retail stock that fits the classic definition of a value stock -- it's worth more than it's trading for. That's Walmart (NYSE: WMT). Based on conventional valuation metrics, Walmart certainly looks reasonably priced at a price-to-earnings ratio of 28, or a 30% discount to the S&P 500, but the real reason the stock looks like such a great value is that the sum-of-the-parts valuation looks much greater than its current market cap of around $375 billion.
Source Fool.com
