3 Value Stocks for Nest-Egg Growth

Stock investing can be volatile, creating short-term risk. But if you invest in stocks at their best value points, you can reduce some of the risk and set yourself up for better long-term returns. With that in mind, we asked three of our contributing investors to write about a stock that's deep in value territory right now and could help grow your nest egg. They gave us tech giant International Business Machines Corp (NYSE: IBM), stalwart utility National Grid plc (ADR) (NYSE: NGG), and engineering upstart NV5 Global Inc (NASDAQ: NVEE)

Image source: Getty Images.

Reuben Gregg Brewer (International Business Machines Corp.): IBM's price-to-earnings (P/E) ratio, price-to-book value ratio, price-to-cash-flow ratio, and price-to-sales ratio are all below its own five-year averages for those statistics. It's more than 4% dividend yield, meanwhile, is well above its five-year average of around 2.7%. If you compare those metrics to the tech industry's current darlings, like Alphabet or Amazon, IBM comes away looking even cheaper.

Continue reading


Source: Fool.com