Investors sometimes make the mistake of associating value with an inexpensive valuation. Although valuation is certainly part of the equation, the best value stocks are companies that deliver on promises to investors, usually through dividend raises and earnings growth. Similarly, a stock isn't just a good value because its stock price is down or its earnings are better than the market gives it credit for, but rather because the company has what it takes to continue growing the business over time and supporting shareholder programs like dividends and buybacks.
For example, Warren Buffett is seen as a value investor at heart. But long gone are the days of Buffett picking "cigar-butt" troubled businesses whose assets may be worth more than the market is giving it credit for. Today, top Warren Buffet stocks include strong brands like , which trades at a premium to the market. Again, the value isn't purely derived from what Apple is worth right now relative to the last 12 months of earnings, but what Apple can continue to produce in the future.
Three Motley Fool contributors were asked to discuss potential value stock picks this year. Below, they offer details on why Coca-Cola (NYSE: KO), Johnson Controls International (NYSE: JCI), and Brookfield Infrastructure (NYSE: BIP)(NYSE: BIPC) are three excellent value stocks to buy in 2024.
Source Fool.com