Value investing strategy defensive consumer staples

Defensive consumer staples, trading at a 10% discount to their 5-year average forward P/E, are drawing attention from fund managers rebalancing towards value investing strategy in volatile macro conditions. Value investing focuses on purchasing stocks that are undervalued, based on some fundamental analysis, relative to their intrinsic value. Value investors actively seek out stocks currently overlooked by the market and aim to profit by purchasing them at a discount compared to their intrinsic value. Doug is a Chartered Alternative Investment Analyst who spent more than 20 years as a derivatives market maker and asset manager before “reincarnating” as a financial media professional a decade ago. With corporate lending tightening, companies relying on internal cash generation—often found via value investing strategy screens—are better positioned to weather macro stress.