5 Value Stocks to Buy Ahead of the Fall Season

The stock market ended in red after a choppy session on Monday, with the S&P 500 slipping 0.3% to 4,118.63. The Nasdaq Composite lost 0.2%, while the Dow Jones shed 46.73 points.

This came after the benchmark indices witnessed their best month since November 2020. Moreover, stocks enjoyed a strong rally last week as investors wagered that the Fed might not be more aggressive with its interest rate hikes.

Additionally, despite two consecutive quarters of negative GDP, solid job growth has led economists to believe that the U.S. isn’t in a true recession. “We created too many jobs. We had record-low layoffs, we had record-high unfilled positions. Consumer spending, business investment were all positive. I just don’t see them declaring a recession,” said Mark Zandi, chief economist at Moody’s Analytics.

Given this backdrop, investors could invest in fundamentally sound value stocks AstroNova, Inc. (ALOT), Bristol-Myers Squibb Company (BMY), Bluegreen Vacations Holding Corporation (BVH), GSK plc (GSK), and Honda Motor Co., Ltd. (HMC), which can soar in the near term.

AstroNova, Inc. (ALOT)

ALOT designs, develops, manufactures, and distributes specialty printers, data acquisition, and analysis systems. The company operates through two segments, Product Identification (PI); and Test & Measurement (T&M), and sells its products under the brand names – QuickLabel, TrojanLabel, and GetLabels.

ALOT’s net revenue increased 6.6% year-over-year to $31.01 million in the fiscal quarter ended April 30, 2022. Operating income stood at $764 thousand, up 3.9% from its year-ago value.

In terms of its trailing-12-month Price/Sales, ALOT is currently trading at 0.71x, 76.7% lower than the industry average of 3.06x. Its trailing-12-month Price/Book multiple of 1.06 is 68.3% lower than the industry average of 3.36.

Over the past month, the stock has gained 2.1% to close the last trading session at $11.76.

ALOT’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, translating to Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

ALOT is also rated A in Value and Sentiment and a B in Momentum and Quality. Within the B-rated Technology – Hardware industry, it is ranked #1 of 49 stocks. Click here to see ALOT’s additional POWR Ratings for Growth and Stability.

Bristol-Myers Squibb Company (BMY)

BMY discovers, develops, licenses, and markets biopharmaceutical products worldwide. It offers products for hematology, oncology, cardiovascular, immunology, fibrotic, neuroscience, and covid-19 diseases.

In July 2022, BMY announced that the CHMP of the European Medicines Agency (EMA) had recommended approval of the fixed-dose combination of nivolumab and relatlimab for the first-line treatment of advanced melanoma. This should enhance the company’s revenue stream.

BMY’s total revenues increased 2% year-over-year to $11.89 billion in the fiscal quarter ended June 30, 2022. EBIT came in at $1.96 billion, up 26.1% year-over-year, while its net earnings grew 34.7% from the year-ago value to $1.43 billion. The company’s EPS grew 40.4% from the prior-year quarter to $0.66 in the same period.

Analysts expect BMY’s revenue for the fiscal quarter ending March 2023 to come in at $11.83 billion, indicating an increase of 1.6% year-over-year. Also, the company’s EPS is expected to grow 8% year-over-year to $2.12 in the same period. BMY beat the consensus EPS estimates in all the trailing four quarters.

In terms of its forward non-GAAP P/E, BMY is currently trading at 9.82x, 51.4% lower than the industry average of 20.22x. Its forward EV/EBIT multiple of 9.87 is 42.4% lower than the industry average of 17.13.

BMY gained 25.5% over the past nine months to close the last trading session at $73.62.

It is no surprise that BMY has an overall rating of A, equating to Strong Buy in our POWR Ratings system. BMY also has an A grade in Value and a B in Growth and Quality. In the Medical - Pharmaceuticals industry, it is ranked #6 out of 170 stocks.

Beyond what is stated above, we’ve also rated BMY for Stability, Sentiment, and Momentum. Get all the BMY ratings here.

Bluegreen Vacations Holding Corporation (BVH)

BVH operates as a vacation ownership company. It markets and sells vacation ownership interests (VOI) and manages resorts in leisure and urban destinations.

For the fiscal quarter ended March 31, 2022, BVH’s total revenues increased 33.3% year-over-year to $195.13 million. Its net income grew 249% from the year-ago value to $19.21 million, while its adjusted EBITDA stood at $34.32 million, reflecting a 115.1% increase year-over-year. Moreover, its EPS was $0.76, up 406.7% from the prior-year quarter.

Street expects BVH’s revenue for the fiscal year ending December 2022 to come in at $837.02 million, indicating a 10.6% year-over-year increase. Its EPS is expected to improve 21.1% year-over-year to $3.48.

In terms of its forward EV/EBITDA, BVH is currently trading at 7.97x, 8.9% lower than the industry average of 8.75x. Its forward EV/EBIT multiple of 6.79 is 44.3% lower than the industry average of 12.19.

BVH’s shares have gained 53.3% over the past year and 4% over the past month to close the last trading session at $26.54.

BVH’s sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, equating to Strong Buy. It also has an A grade in Value and Sentiment and a B in Quality.

Out of the 22 stocks in the B-rated Travel - Hotels/Resorts industry, BVH is ranked #1. To get BVH’s ratings for Momentum, Stability, and Growth, click here.

GSK plc (GSK)

Headquartered in Brentford, United Kingdom, GSK engages in manufacturing, and marketing pharmaceutical products, vaccines, over-the-counter medicines, and health-related consumer products. It operates through four segments: Pharmaceuticals; Pharmaceuticals R&D; Vaccines; and Consumer Healthcare.

On July 27, the US FDA approved Benlysta (belimumab) for treating active lupus nephritis (LN) in children aged 5 to 17 years. This first-ever FDA-approved treatment for pediatric LN marks a significant step in providing treatment to children at risk of early kidney damage.

For the fiscal second quarter of 2022, GSK’s continuing operations turnover increased 19% year-over-year to £6.93 billion ($7.10 billion). Its gross profit grew 15% from the year-ago value to £4.75 billion ($4.87 billion). Adjusted operating profit for the quarter stood at £2.01 billion ($2.06 billion), reflecting a 22% increase year-over-year.

Street expects GSK’s EPS for the fiscal year ending December 2023 to improve 5.1% year-over-year to $3.85. The consensus revenue estimate of $37.96 billion for the same period represents a marginal increase year-over-year. The company also surpassed the consensus EPS estimates in each of the trailing four quarters.

In terms of its forward EV/Sales, GSK is currently trading at 2.93x, 23.4% lower than the industry average of 3.82x. Its forward Price/Sales multiple of 2.22 is 53.1% lower than the industry average of 4.74.

The stock has gained 3.7% over the past year to close the last trading session at $41.63.

The company has an overall rating of A, translating to Strong Buy in our proprietary rating system. GSK also has an A grade in Value and a B in Stability and Quality.

The stock is ranked #12 in the Medical - Pharmaceuticals industry. Click here for additional POWR Ratings for Sentiment, Growth, and Momentum for GSK.

Honda Motor Co., Ltd. (HMC)

Headquartered in Tokyo, Japan, HMC develops, manufactures, and distributes motorcycles, automobiles, power products, and others. It operates through four segments: Motorcycle Business; Automobile Business; Financial Services Business; and Life Creation and Other Businesses. 

On July 14, Kyndryl (KD), the world’s largest IT infrastructure service provider, announced a multi-year agreement with HMC to support its infrastructure transformation across U.S. manufacturing plants, research and development, captive finance, and sales operations. This collaboration is expected to help HMC harness data and bring more innovation to its customers.

HMC’s sales revenue increased 10.5% from the prior-year quarter to ¥14.55 trillion ($0.11 billion) in the fiscal quarter ended March 31, 2022. Operating profit for the quarter came in at ¥871.23 billion ($6.38 billion), reflecting an increase of 32% year-over-year, while its EPS came in at ¥411.09, up 8% year-over-year.

The consensus EPS estimate of $3.47 for the fiscal year ending March 2023 represents a 26.6% improvement year-over-year. The consensus revenue estimate of $125.11 billion for the same period represents a 368.4% increase year-over-year. It has an impressive earnings surprise history, as it topped Street EPS estimates in each of the trailing four quarters.

In terms of its forward P/E, HMC is currently trading at 7.60x, 43.4% lower than the industry average of 13.41x. Its forward EV/Sales multiple of 0.65 is 42.5% lower than the industry average of 1.14.

HMC’s stock has gained 9% over the past month to close the last trading session at $26.38.

HMC’s POWR Ratings reflect this promising outlook. The company has an overall rating of A, translating to Strong Buy in our proprietary rating system. It also has an A grade in Value and a B in Quality and Stability. It is ranked #3 of 64 stocks in the  Auto & Vehicle Manufacturers industry.

Beyond what is stated above, we’ve also rated HMC for Momentum, Sentiment, and Growth. Get all the HMC ratings here.

ALOT shares were trading at $11.95 per share on Tuesday afternoon, up $0.19 (+1.62%). Year-to-date, ALOT has declined -11.48%, versus a -12.56% rise in the benchmark S&P 500 index during the same period.

Komal's passion for the stock market and financial analysis led her to pursue investment research as a career. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.

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