2 Top Value Stocks to Buy in May
So far, 2021 has been a bonanza for stock market investors. The S&P 500 has already surged 13% year-to-date and is now averaging an eye-watering valuation of 43 times earnings. That means it's trading at a significant premium compared to its historical P/E average of 16.
Those historically high valuations have some investors considering a switch to value stocks to lock in the gains. That makes now a good time to bet on value stocks like Bausch Health (NYSE: BHC) and Albertsons (NYSE: ACI), which trade at relatively affordable multiples compared to competitors. Let's dig deeper.
Trading at 1.5 times sales and 6.6 times forward earnings, Bausch Health stock is more than discounted; it's distressed. Investors are still worried about the drugmaker's $24.2 billion debt load (compared to its $1.8 billion in cash). But Bausch looks poised to recover as management deleverages the company's balance sheet and unlocks value by divesting potentially undervalued assets.
Source Fool.com
