The search for value stocks remains strong for investors. Indeed, whether value even exists in today’s market is a discussion for another day. Valuations have exploded to unforeseen levels and continue higher. Despite risks of tapering, the stock market appears to be in full-on bull mode of late.
Considering the current market scenario, growth stocks appear to be the sole focus for a large number of investors. However, picking top value stocks and holding on to them for the long term has been a proven way of building stable wealth over time. Indeed, if one looks at some of the greatest investors of all time, like Warren Buffett, it is clear how successful value investing has been in terms of maximizing long-term portfolio value.
That said, selecting the best value stocks is not easy. Accordingly, let’s dive into two of the best value stocks I’m considering for November.
Top value stocks: Alimentation Couche-Tard
One of the stocks I’ve thought has tremendous value for some time is Alimentation Couche-Tard (TSX:ATD.B). Indeed, this global purveyor of gas stations and convenience stores has had a relatively attractive valuation for quite some time.
Much of this lower valuation has been a result of the pandemic pushing driving demand lower this past year. However, indications are that cars are coming back on the road, and the commute is back on. For Couche-Tard, this is a very good thing.
The company currently trades at around 16 times earnings — a number that has continued to creep up of late. Indeed, Couche-Tard stock appears to finally have some momentum, as investors seek out high-quality companies trading at reasonable valuations.
However, I expect the company’s earnings to come in very strong next year. Accordingly, on a forward-looking basis, this valuation is even cheaper.
Currently, Couche-Tard’s global markets include the likes of Russia, Sweden, Ireland, Denmark, and, of course, Canada and the United States. Furthermore, Couche-Tard has expanded its operations into the Asian market as well.
This is a great long-term holding for investors bullish on the growth of the global economy.
Indeed, recent news that tapering has started should boost bond yields in the coming quarters. With the real yield having held near negative territory for so long, a move into positive territory should, in theory, be bad for gold.
However, the best gold miners will continue to do their thing and earn impressive cash flows. Valuations, as mentioned, are near extreme levels. Accordingly, many investors may opt for safety in the form of Agnico Eagle or other high-quality gold miners right now.