Value Stocks: The Cornerstone of a Strong Portfolio

By Matthew Makowski Value stocks – as the name implies – offer investors a solid chance to boost the future value of their portfolio. Stocks in this category are notable because they trade at a discount in relation to their fundamentals. And this is what makes them so, well, valuable.

The hallmark of a good value stock is that it’s trading below its intrinsic value. This is determined by measuring any number of metrics. A low price-to-earnings (P/E) ratio is a classic sign of a value stock. Historically, the average P/E for the S&P 500 is around 15. So anything below that would equate …read more

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