After outperforming from last fall into the spring, value stocks have been overtaken by growth stocks, but that is expected to change as the economic recovery continues. So, now is the time to start putting your money to work in undervalued companies that offer the potential for strong returns such as Gilead Sciences Inc . (NASDAQ:GILD), HP Inc. (NYSE:HPQ), and CNH Industrial N.V. (NYSE:CNHI).While value stocks have trailed growth stocks since early June, I see no reason to avoid them. Even with the Delta variant surging across the nation, the economic recovery remains intact. So, I expect value to overtake growth at some point in the near future, which means now is the time to get in.
With so many stocks at all-time highs, you would think that value would be hard to find, but that is further from the case. There are still plenty of undervalued stocks if you know where to look. But you must act fast if you want to get into these companies at a great price. When many investors hear value, they only think of cyclical industries such as construction, steel, or energy.
But investors can find value in almost any industry. That's why I ran a screen in our POWR Ratings system for stocks that had an overall rating of Buy and a Value Grade of A. I then trimmed down this list to find some of the best opportunities, which include Gilead Sciences Inc. (GILD), HP Inc. (HPQ), and CNH Industrial N.V. (CNHI).