London, UK, 4 Sep 2021, ZEXPRWIRE – Value investing is a common investment strategy that involves looking for stocks traded at prices below what they are actually worth to determine their intrinsic value. One of the main factors used in this process includes using stock price relative to one or more fundamental business metrics such as earnings, cash flows, and dividends paid out by companies.
The broker from FinancialCentre, Troy Deloitte, says people like Warren Buffet who have excelled at this investment strategy and increased their wealth immensely over the years still find it tough to outperform the stock market as a whole. Therefore, one of the primary advantages of value investing is that investors can save themselves from poor-performing markets while also making good returns in strong ones as well. They can do so by diversifying their investments across hundreds or even thousands of stocks both in large caps and small caps.
One alternative method that people are now using to diversify their portfolio is by investing in Exchange Traded Funds (ETFs) which allow individuals to gain exposure to many different companies with just one security. Investors typically invest in these funds based on certain sectors they want exposure for such as technology, healthcare, or energy. That is why they are particularly useful for people who want to play it safe while still having exposure to various industries in the market.
Here are three stocks that could be great value buys for August 2021:
–Qurate Retail Inc. (QRTEA) – August 2021 price target of $9.81 with a potential upside of 3.5%.
Qurate Retail is an e-commerce services company that works with brands like QVC, HSN, Zulily, and Frontgate to provide digital commerce. It reaches 218 million homes through various media channels such as television networks, social pages, and mobile apps among others.
–Sage Therapeutics Inc. (SAGE) – August 2021 price target of $72.11 with a potential upside of 3.6%.
Sage Therapeutics is one of the newest biotech companies which focuses on developing novel drugs to treat neurological, psychiatric and autoimmune disorders in adults. Its drug treatments are based on a proprietary product platform called SAGE which uses engineered monoclonal antibodies that modulate neuroimmune processes inside the body.
–Rocket Companies Inc. (RKT) August 2021 price target of $14.99 with a potential upside of 3.9%.
Rocket is an industrial manufacturing company that produces chemical intermediates, additives, and functional fluids for the consumer products, construction, automotive, and metalworking industries in India.
–Athene Holding Ltd. (ATH) August 2021 price target of $59 with a potential upside of 5%.
Athene is one of the largest providers of long-term care insurance solutions in Australia which operates through its subsidiaries across multiple states and territories there. It also offers individual life insurance plans to cater to people who need some help during their years at lower costs than regular life insurance policies.
–Freeport-McMoRan Inc. (FCX) August 2021 price target of $12.56 with a potential upside of 88.2%.
FCX is one of the largest producers of copper and gold in North America with assets that include mines, smelting, refining, logistics, and oil in Indonesia. This stock has seen its share prices surge to all time heights recently but analysts are still recommending it as a buy because it is likely to continue unveiling some major milestones that will further boost its value in August 2021.
–Zoom Video Communications Inc.(ZM): On the other hand, August 2021 might not be the best time for investors to invest in Zoom Video Communications Inc.(ZM) which only shows a potential downside of -191% over five years based on our forecasts using valuation ratios like EBITDA margin and PER.
Zoom is a cloud-based video communications company that offers various software and hardware to enable businesses to make phone, videoconferencing, and web conferencing calls from their mobile devices.
–Chipotle Mexican Grill Inc. (CMG): August 2021 might also not be the best time for investors to invest in Chipotle Mexican Grill which has a potential downside of -38% based on our forecasts using valuation ratios like EBITDA margin and PER.
CMG is an American fast casual restaurant chain that operates more than 2,400 locations across America, Europe, Canada, the Middle East, and India. Its revenue comes from company-operated restaurants but it also earns income from franchised locations through fees and rent payments. Other companies like Yum Brands Inc (YUM) have been struggling recently due to dropped foot traffic numbers because of food safety concerns so CMG shares might follow in August 2021 as well.
Therefore August 2021 might be the perfect time for investors to buy ZM or RKT stocks because of the lucrative potential upside they offer compared to other companies in their industries. These companies are also well-established meaning that they’re less likely to go under any time soon which makes them a great long-term investment.
Also don’t miss out on QRTEA stock either as this company brings value to its investors by offering quality products while keeping prices low through cost-efficient management strategies in order to increase profit margins over time.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.