At a Decision Point

AEP is overvalued when above $98 and undervalued at $79. At its current price of around $74, the company is likely to be undervalued with an estimated two-year return of 21%.

JPM is a buy as of Q3 2023. The estimated 2-year return from the recent price is 21.8%. The stock is estimated to be undervalued at $130 and overvalued at $190.

Stock Market Commentary

Value investing is a strategy that looks to determine if the market has undervalued a stock, and there are many metrics that can help you discover these opportunities. There are two key categories of metrics that are used in value investing.

Stock Market Commentary

On a typical trading day, value investors should own 30 to 50 stocks if the market is not overheated or undervalued. However, value investors never have a quota on the number of stocks they must own.

Value investing and growth investing both look at the company fundamentals to determine if the company should be bought. This is in contrast with momentum investing and technical analysis, which are indifferent to the underlying asset.

The greatest value investors used to scan the morning newspaper for interesting stocks to do more research on. Nowadays, value investors have a multitude of websites, videos, and groups they can rely on for new potential stocks to buy at a bargain.

A value investing strategy may be utilized to create high returns for low risk. However, the risk with value investing fluctuates depending on the individual investor and their implementation of the strategy.

To value a stock, you need to evaluate a company's growth potential, calculate their intrinsic value, and determine an acceptable risk factor.

Stock Market Commentary

Stock Market Commentary

Value investing still holds up today as a profitable investing strategy. Stable companies that are fundamental to the U.S. economy can provide strong returns when you use value investing strategies.

Stock Market Commentary

Value investing is great for investors that have the patience to wait for their investments to grow and the self-confidence to believe in their stock analysis. Value investing has lower volatility than trading and is also less stressful.

The first step when you start value investing is to ground your thinking. When you start investing, remind yourself that you’re buying a piece of the company. You’re becoming a partner in that company.

Stock Market Commentary

Stock Market Commentary