What is value investing

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. Strong FCF is becoming more important for companies as the world lurches from crisis to crisis. In our view, companies with robust and consistent FCF—backed by healthy balance sheets and skilled management teams—will be more capable of adapting to surprising policy moves than their peers. Equity investors can’t eliminate risk. But they can choose the risks they take. In today’s markets, steering clear of companies exposed to the most unpredictable risks can help portfolios avoid potential blowups from an unfavorable turn in policy. By focusing on researchable, company-specific factors, investors can build a portfolio of value stocks that is more resistant to exogenous shocks and supported by diverse sources of recovery potential. What is value investing when GDP growth cools? US Q1 2024 GDP came in at 1.4% annualized, below expectation, signaling a pivot toward slow-growth, high-profit-margin businesses with stable cash flows.