This Value Stock Is a Long-Term Market Beater

Don't look now, but value stocks are back in style -- with inflation and coming increases in interest rates as the culprit. Just to cite one example: The Vanguard Value ETF has outperformed the Vanguard Growth ETF 15.8% to 4.8% in the past year.  

Rising interest rates tend to hurt growth stocks more than value stocks. That's because growth stocks rely more on long-term gains and suffer more from the discounting effect of rising interest rates.  In contrast, value stocks can do quite well. Not only that, but companies with pricing power will be stronger performers during times of inflation. One value stock with pricing power that has outperformed the broader market is Old Republic International Corp. (NYSE: ORI).

When it comes to market-beating stocks, insurance companies aren't necessarily the first thing that comes to mind. But that's exactly what Old Republic International has done for a decade now. The stock has outperformed the S&P 500 index, returning investors 386% compared to the S&P 500's 294% at the same time.  

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Source Fool.com