Value stocks

4 growth stocks, 4 value stocks to buy now

Growth investing versus value investing is the dilemma of 2022. It’s hard to make sense of all the stocks that are…

Growth investing versus value investing is the dilemma of 2022.

It’s hard to make sense of all the headlines assailing investors in 2022. Is the negativity overdone, with the impacts of inflation and rising rates already priced into equities? Or are these just the early stages of a long-term downturn that is forcing investors to get on the defensive? If you’re in the first camp, you might be looking for growth-oriented stocks ready to burst if and when things pick up. If you’re into the second, you might want solid value-oriented plays that offer a good dividend as a hedge against further declines. Whatever your view, the following list has something to offer via four value stocks and four growth stocks to consider right now.

Growth Stock – Lantheus Holdings Inc. (Ticker: LNTH)

If you haven’t heard of Lantheus’ holdings yet, you might be surprised to learn that this healthcare stock doubled in 2022 even as the rest of Wall Street plummeted. This includes a staggering 40% increase in a day or two in February thanks to spectacular earnings. Specifically, in the fourth quarter of 2021, Lantheus saw its revenues increase by almost 40% and its profits explode four times more than the previous year. Such dramatic growth may not be sustainable in the long term for this diagnostics company, but with projections that fiscal 2022 sales will double from the prior year and then settle into an expansion double digits in the coming years, there are clearly plenty of reasons for optimism. about this mid-sized health game.

Value Stock – Nutrien Ltd. (NTR)

Nutrien’s roughly $50 billion is as solid a business as you’ll find on Wall Street. It is one of the largest dedicated agricultural companies on the planet, fully focused on agricultural products and financial solutions for farmers who need these materials. Not only does NTR serve a vital part of the global economy by supporting food production, but it dominates its niche and has a scale that makes it difficult for others to compete. It’s no wonder that in this risky environment, NTR stock has held steady throughout the year even as other stocks struggled in 2022. And while it may not be While not the most attractive dividend payer among the value investments on this list, the 3.3% yield is superior. the roughly 1.6% paid on average by S&P 500 companies.

Growth Stocks — H&R Block Inc. (HRB)

You might not think tax preparation company H&R Block is particularly successful. But it jumped about 20% in a single session this spring after strong quarterly results and raised the full-year outlook. This is partly due to a better-than-expected rebound from pandemic-related lows for the company; people who are broke and out of work usually don’t want to pay for tax preparation. However, there is a tailwind of more sustainable growth that includes aggressive stock buybacks as well as ever-higher growth forecasts that show this is not just a rebound story. Shares are up more than 50% year-to-date and just hit a new 52-week high in July on anticipation of strong results going forward.

Value Stock – AbbVie Inc. (ABBV)

AbbVie spun off from Abbott Laboratories (ABT) about a decade ago to separate its branded biopharmaceutical business from low-margin products like consumer health brands such as Ensure nutritional drinks and Similac infant formula. . Some investors were skeptical of the move, as one-off blockbusters like Humira now face patent expiration. But AbbVie has worked hard to maintain its product pipeline to replace current leaders. In fact, an industry analyst recently predicted that ABBV will be the biggest of all Big Pharma stocks by 2028 thanks to its continued growth as others fall behind – so it’s clearly going nowhere. With stocks rising in 2022 despite a bear market, a 3.7% dividend and a forward price-to-earnings ratio of 10, this is a stock that has proven to be a store of value in an environment at risk.

Growth Stock — McKesson Corp. (MCK)

A world leader in healthcare equipment, McKesson supplies essential products to medical practices, surgery centers and hospitals. This includes generic and over-the-counter medications, surgical tools, and conventional bandages and syringes. Healthcare is a recession-proof industry that offers great stability, but MCK’s stock also proves there’s plenty of growth here for companies that know how to deliver. Even though the broader stock market has been underwater, this $47 billion healthcare company has seen its shares rise about 30% in 2022 on modest but steady revenue and market growth. net profit.

Value Stock – Stellantis NV (STLA)

Formed in 2021 via a 50-50 merger between Fiat Chrysler Automobiles and the French group PSA which owns Peugeot and other European brands, Stellantis is now a carmaker of around 40 billion dollars, perfectly sized for the future of electric vehicles. The reality is that many legacy brands are suffering from the next wave of industry disruption, and STLA could represent the first in a wave of major consolidation to weed out the old and make way for modern brands that meet the needs of 21st century transportation. The “merger of equals” avoided the inflated debt loads we see in deals like a private equity buyout, and negativity on Wall Street sent stocks plummeting to a price-to-earnings ratio at an all-time low of minus of 3 at the moment – with a yield of 9% more! The future is certainly uncertain, but there is still a lot of value in STLA shares.

Growth Stock — MercadoLibre Inc. (MELI)

Overseas e-commerce player MercadoLibre is often referred to as Latin America’s Amazon.com Inc. (AMZN), which is an apt description. It operates a consumer-driven Internet marketplace that dominates the region’s most populated and lucrative areas, including the thriving city centers of Brazil and Argentina. It’s in the early stages of that growth, but it’s also expanding into other long-term technology solutions, including mobile payments. The stock crashed in 2022, but with revenue growth projections of nearly 50% in that fiscal year and another 30% growth in fiscal 2023, it could be an aggressive growth stock that will ultimately produce gigantic returns if all goes well.

Value Stock – Amcor PLC (AMCR)

Perhaps the most boring stock on this list, Amcor might be just what the doctor ordered if you’re worried about global growth prospects and want to hide in fundamental value investing. Amcor is a packaging products company that produces both “flexible” which includes specialty pouches and films, and “rigid” which includes bottles, cans and jars. A wide range of customers use its products in the beverage, medical, personal care and other industries to supply a diverse customer base. And while there’s no stellar growth ahead, Amcor is incredibly stable and yielding 4% right now. And furthermore, that yield is expected to rise as AMCR is one of Wall Street’s vaunted dividend aristocrats that has increased its payouts at least once a year for 25 straight years.

4 growth stocks, 4 value stocks to buy now:

— Growth Stock – Lantheus Holdings Inc. (LNTH)

— Stock of value – Nutrien Ltd. (NTR)

— Growth Stocks — H&R Block Inc. (HRB)

— Value Stocks – AbbVie Inc. (ABBV)

— Growth Stock — McKesson Corp. (MCK)

— Value Stock – Stellantis NV (STLA)

— Growth Equity — MercadoLibre Inc. (MELI)

— Value Stock – Amcor PLC (AMCR)

More US news

Artificial Intelligence Stocks: Top 10 AI Companies

8 stocks to buy in a bear market

8 best real estate stocks to buy

4 growth stocks, 4 value stocks to buy now originally appeared on usnews.com

Update 7/14/22: This story was previously published on an earlier date and has been updated with new information.