Here's My Top Value Stock to Buy Right Now
With companies in the S&P 500 trading at an average price-to-earnings (P/E) multiple of 40, stocks are getting pricy versus their historical average of just 16. In times like these, investors often look to value stocks -- stocks that trade at low prices relative to their earnings and growth potential -- as a safer bet.
Altria Group (NYSE: MO) is a great value stock pick because of its dirt-cheap stock price and pivot to less dangerous cigarette alternatives. Let's explore the reasons why this tobacco giant is my top value stock to buy right now.
With a stock price of $48 compared to projected adjusted earnings per share (EPS) of up to $4.62 in 2021, Altria boasts a forward P/E of roughly 10. That multiple is significantly lower than the market average and represents an attractive discount to other U.S.-traded tobacco companies like Philip Morris International and Vector Group, which trade for 15 and 17 times forward earnings, respectively.
Source Fool.com
