The best value stocks to buy often fly under the radar, particularly during times of market optimism and excitement. However, prudent investors understand that market dips can create exceptional opportunities to scoop up high-quality companies at bargain prices.
Value stocks typically belong to established companies known for their reliable dividends, strong track records of profitability and resilience through economic cycles. Moreover, they also possess strong fundamentals and promising potential, often overlooked or undervalued by the market. As temporary market dips offer discounts on these reliable giants, it’s prime time to consider adding some to your portfolio.
Now, let’s explore the three best value stocks to buy during the Q2 market dip in 2024!
Procter & Gamble (PG)
Procter & Gamble (NYSE:PG) is a titan of the consumer staples industry, boasting a large portfolio of brands like Crest, Gillette, Tide and Head & Shoulders. The demand for these products is considered essential, providing the company with consistent revenue streams regardless of the economic climate.
P&G has demonstrated a consistent track record of financial performance and shareholder value creation. Its disciplined approach to cost management and effective marketing initiatives have driven revenue and margin expansion over the last decade. While a Q2 2024 market dip may impact PG shares, the company’s resilience remains intact. Furthermore, P&G investors often seek refuge in more stable companies like P&G, which can be a great option for the more conservative investors. It can provide more predictable returns and reduce your overall portfolio risk. With 69 years of consecutive dividend increases, PG stock is one of the best value stocks as investors become wary of the Fed’s plans for interest rates in 2024.
Coca-Cola (KO)
Coca-Cola (NYSE:KO) is another classic defensive stock with a strong history of reliable performance. The company’s brand recognition and global market penetration make it synonymous with the beverage industry.
Coca-Cola has an impressive dividend growth history spanning 63 years, showcasing a commitment to shareholder returns. One of the key contributing factors to Coca-Cola’s attractiveness as a value stock is its stable cash flow generation. This is a crucial attribute that all value stocks must obtain in order to manage the businesses’ day-to-day operations. Additionally, its strong pricing power and vast distribution network across the globe further bolster its financial stability profile. In the 2023 fiscal year, revenue increased 6% year-over-year to $45.75 billion. Operating income grew 4% from 2022, with EPS up 13% to $2.47 per share. Management forecasted double-digit EPS growth in FY24. Moreover, KO’s growing dividend is great news for income-oriented investors. That makes Coca-Cola one of the top value stocks to buy during the Q2 market dip.
JPMorgan Chase (JPM)
JPMorgan Chase (NYSE:JPM) stands tall as the largest bank in the United States, offering a broad range of financial services from consumer banking to investment banking. While the banking sector may face volatility during a market dip, its cyclical nature can fuel the potential for a greater rebound when uncertainty subsides.
The company boasts a fortress balance sheet, robust risk management practices and a track record of adapting to changing market conditions. With a strong focus on innovation, the bank is at the helm of some leading technological trends. Additionally, the bank’s commitment to corporate social responsibility and sustainable business practices enhances its appeal further. The 2023 fiscal year was a record year for the company, as it was one of the largest beneficiaries of higher interest rates. Ultimately, that fueled the company’s net interest income and bottom line. JPM has also averaged a 10.8% CAGR in its dividend over the last decade, and its low payout ratio leaves much room for further increases. After reporting strong Q1 FY24 earnings results, JPM stock remains one of the top value stocks to buy on weakness in 2024.
On the date of publication, Terel Miles did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
