2 Top Value Stocks to Buy in 2021

The S&P 500 index grew a healthy 16.3% in 2020, despite the coronavirus pandemic, a recession, and plenty of economic uncertainty throughout the year. Now, the index trades near the top of its historical valuation range, with stocks in the index averaging a price-to-earnings (P/E) multiple of 38.

It is impossible to predict how the market will perform in 2021. But repeated strong performances are not necessarily the norm. Investors looking toward 2021 with concern might want to consider betting on value stocks with fewer expectations built into their prices (good and bad) to mitigate risk in what is currently a pricey market.

Let's explore the reasons why value stocks like Johnson & Johnson (NYSE: JNJ) and Target (NYSE: TGT) could make great picks for the new year.

Source Fool.com