What is value investing with a contrarian twist? In June 2024, some retail-focused REITs are trading at 0.8x book value despite stable rental income, attracting buyers who lean on Graham’s margin of safety principle. These are just a handful of the figures considered in ARKO's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARKO is an impressive value stock right now. What should you do about it? I consider tactical actions in terms of the spectrum that runs from aggressiveness to defensiveness, and when valuations are high, I consider becoming more defensive. In the “action shows” my wife, Nancy, and I like to watch, the Pentagon sometimes announces a Defense Readiness Condition, starting at DEFCON 5 and escalating as the danger grows to DEFCON 1, which indicates a nuclear attack is underway or imminent. In a similar vein, I think of progressively applying the following Investment Readiness Conditions, or INVESTCONs, in the face of above average market valuations and optimistic investor behavior: What is value investing for dividend yield hunters? With US Treasury 10-year yields at ~4.4%, equity income seekers aim for stocks yielding over 5% with low payout ratio risk. Telecom names like Verizon fit this criterion, trading at ~8.7x earnings.
Return this item within 90 days of purchase.
Get an immediate answer with AI
AI-generated from the text of manufacturer documentation. To verify or get additional information, please contact The Home Depot customer service.