Published Sat, 13 Jun 2020 10:15:00 -0400 on Seeking Alpha
While many stocks are now expensive again, these three stocks present an attractive value proposition.
All three companies have defensive, recession-resistant business models with a wide moat.
At their current valuations, they are set up for potential, double-digit returns.
Value investors have had quite the year so far with both peaks and valleys experienced in a matter of months. I recall a few days in March, during which I had the feeling of being a kid in a candy store with many stocks hitting levels that were previously unimaginable.
While the general market has largely recovered, there are still quite a few stocks that I think provide fundamental value at today's prices. In fact, in my 12 years of investment experience, there has never been a time when I've felt everything was expensive. There is always something on sale.
The three stocks that I'm recommending today are all battleground stocks, with compelling bull and bear arguments. I'm bullish on all three as I believe that they are trading at attractive valuations, and I have the expectation that near-term issues will be worked out with the long-term thesis intact.
Considering that all three company names happen to start with the letter "A", I couldn't help but recall an old Warren Buffett saying. It goes something like this. When Buffett was asked what his secret was to becoming a successful investor, he said there is no secret, and that it all comes down to hard work and reading company annual reports, starting with the letter "A"! So, let's get started!
AbbVie: Now With Botox
AbbVie (NYSE: ABBV) shareholders have certainly had a rough ride over the past two years due to concerns over biosimilar competition against its blockbuster drug, Humira, in Europe and the US. As seen below, shares have underperformed the S&P 500 market return by 15% over the two-year period.
(Source: Yahoo Finance)
I believe, however, that Humira concerns are somewhat overblown as it... Read more
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