These 4 stocks are investment pros’ favorites — and not one is a ‘FAANG’ stock


It takes guts to be a value investor these days. But the top-performing investment newsletters have no shortage of courage. By value, I’m referring to stocks that are out of favor, trading for relatively low ratios of price-to-earnings, book value, sales, and so forth. Value’s opposite is growth: Stocks in this latter category typically trade for high valuation ratios.

I’m not kidding when I say that value investing takes guts. According to a recent analysis from Research Affiliates, value has lagged growth now for more than 13 years — the longest stretch in recorded U.S. market history. This has led to a seemingly-endless series of pronouncements in recent years that value investing is dead.

Read: What’s happened to value stocks?

Try telling that to the top performing investment newsletters tracked by my Hulbert Financial Digest performance-auditing firm. These four stocks are tied for being the most recommended right now by those newsletters:

• Walt Disney
DIS,
+0.16%

• FedEx
FDX,
+1.06%

• IBM
IBM,
-0.61%

• JPMorgan Chase
JPM,
-0.77%

Notice the absence of any of the so-called FAANG stocks that have been leading the market in recent weeks.

All four of these stocks are instead solidly in the “value” category: Their average trailing 12-month PE ratio, for example, is 35% lower…

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