<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "What is it?" 39 a consumer browsing the goods on a sidewalk Buying or browsing the aisles of new vehicles at a dealership, people like to feel like they're doing a good job We all love value. stock market, where savvy investors are trying to zigger when other zag rewards when a neglected or oversold title wins in the long run If three value-seeking strategies are a strategy of interest to you, three contributors to Motley Fool think you should check. Target company (NYSE: TGT), Wells Fargo (NYSE: WFC), and General Motors (NYSE: GM). That's why. "Data-reactid =" 11 "> That it is a consumer browsing the goods during a sale on the sidewalk or pacing the aisles of new vehicles at a dealership, the People love to have the feeling of getting very good deals.We love it all This is especially true in the stock market, where savvy investors are trying to zigger when other zag and benefit from the benefits when a title overlooked If you are looking for a strategy that interests you, three Motley Fool contributors think you should check Target company (NYSE: TGT), Wells Fargo (NYSE: WFC), and General Motors (NYSE: GM). Here's why.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "A reseller on the rebound"data-reactid =" 12 ">A reseller on the rebound

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Jeremy Bowman (Target): & nbsp;Traditional retailers present one of the largest opportunities for value investors today; the sector has been largely ignored as the market appears to view the rise of e-commerce as an endemic threat to physical stores. However, this is not really the reality in the industry. While many retailers have difficulties, and some big names such as & nbsp;Sears Holdings and Toys R Us have filed for bankruptcy, others are solidly profitable and even prosperous. "data-reactid =" 13 ">Jeremy Bowman (target): Traditional retailers present one of the largest opportunities for value investors today; the sector has been largely ignored as the market appears to view the rise of e-commerce as an endemic threat to physical stores. However, this is not really the reality in the industry. While many retailers are struggling, and some big names like Sears Holdings and Toys R Us have filed for bankruptcy, others are solidly profitable and even prosperous.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The target looks like one of the best of The large-area chain trades at a P / E ratio of 13.7 and is Aristocratic Dividend, paying a dividend yield of 3.5%. Target has also seen strong sales growth in recent days, after investing in e-commerce and its store network, and the stock is down about 20% from its peaks last fall. abusive sale, an opportunity for investors. & data; "Data-reactid =" 14 "> Target seems to be one of the best in the group so far: The big-box retail chain is trading at a C / B ratio of 13.7 and is a dividend Aristocrat, which pays a dividend of 3.5%, must also record strong growth in sales, after investing in e-commerce and its store fleet, down about 20% from its peak last autumn, following an unfortunate sale off, creating an opportunity for investors.

Comparable sales jumped 5.7% from November and December, the main holiday shopping season, and digital sales increased 29%, showing that Target is running both online and offline. This follows a third quarter in which sales rose 5.3%, digital sales jumped 49% and adjusted earnings per share increased 20%.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "With its reputation" cheap chic "and its strength to Through categories like home, baby and clothing, as well as improving grocery operations, Target has a unique profile in the retail business and its strategy of expanding delivery capabilities and picking, redeveloping stores and opening new small-format locations in high-density areas such as university towns and underserved urban neighborhoods is paying off. "As sales growth continues, net income will follow reward investors "data-reactid =" 16 "> With its reputation" chic and cheap "and its strength in several categories like home, baby and clothes, as well as improving grocery shopping, Target has a unique profile in retail, and its strategy of expanding delivery and collection capabilities, redeveloping stores and opening new small-format locations in high-density areas such as university towns and cities. underserved urban neighborhoods are paying off, rewarding investors who are benefiting from the reduction today.

Wholesale and cheap

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Jordan Wathen (Wells Fargo): This year may not be very exciting for Wells Fargo. The bank now expects it to remain capped at 2,000 billion assets for the remainder of 2019, which removes the possibility of increasing its balance sheet by depositing deposits and making more loans. "data-reactid =" 18 ">Jordan Wathen (Wells Fargo): This year may not be very exciting for Wells Fargo. The bank now expects that it will remain capped at $ 2 trillion worth of assets for the remainder of 2019, which removes any possibility of increasing its balance sheet by accepting deposits. and by granting more loans.

But even banks that do not have growth are worth buying at the right price, and since equities are trading about 12 times 2018 earnings and about 10 times what they could reasonably earn in 2019, Wells Fargo definitely check the boxes to determine their value.

The scale is the name of the game, and Wells Fargo has it. Nationwide, the bank has more than 5,500 branches and manages approximately $ 1,300 billion in customer deposits. These deposits cost him very little, barely 0.56% per year, during the last quarter.

Wells Fargo main entrance to the bank.

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Source of the image: Wells Fargo.

A stable, low-cost deposit base allows Wells Fargo to achieve high returns without taking excessive risks in its loan and securities portfolios. Non-real estate riskier consumer loans account for only about 7% of its interest-bearing assets. Its commercial banking activities are largely limited to commercial and industrial real estate loans and commercial real estate loans.

The story continues

As long as Wells Fargo remains capped at $ 2 trillion in assets, investors should expect the bank to pay almost all of its income in the form of dividends and share buybacks. It is not inconceivable that the bank could generate a dividend of 3.5%, while reducing its outstanding shares each year until an average rate of less than one figure until She finally gets permission to grow again.

We guess when Wells Fargo will have the green light to grow. But as long as stocks are trading at a price as low as today, Wells Fargo may be better off staying in place, using its earnings power to pay a high dividend and buy back shares at low earnings multiples.

A builder to govern them all

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Daniel Miller (General Motors):& nbsp; When the auto industry came out of the past recession, Ford Motor Company was in the spotlight as a Wall Street favorite, and for good reason. But this scenario has reversed in recent years and Ford has lost momentum against his rival American General Motors. In the last three years, GM's stock has risen by 33%, while Ford's stock has decreased by 28%. GM also has a strong fourth quarter, its potential for growth with its arm's length vehicle subsidiary, GM Cruise, and its expected price / earnings ratio about six times higher. "Data-reactid =" 41 ">Daniel Miller (General Motors): When the auto industry came out of the past recession, Ford Motor Company was in the spotlight as a Wall Street favorite, and for good reason. But this scenario has reversed in recent years and Ford has lost momentum against his rival American General Motors. In the last three years, GM's stock has risen by 33%, while Ford's stock has decreased by 28%. In addition, GM has just posted a solid fourth quarter, benefiting from a significant advantage with its arm's length vehicle subsidiary, GM Cruise, and trading at a low expected price / earnings ratio of approximately six times. .

Let's start by looking at how GM closed the books in 2018 and what it expects in 2019. GM posted a net profit of $ 2 billion for the fourth quarter of 2018, thanks to impressive sales of crossovers, SUVs and high margin trucks in the US market. which helped offset restructuring costs and losses abroad. Adjusted earnings per share was $ 1.43, disappointing analysts' estimates of $ 1.22 per share. And GM expects 2019 to be even better, thanks in part to cost savings from the previously announced restructuring and higher profitability driven by fresh produce.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "But the real asset for investors looking for value is that GM can overcome the next plateau of new vehicle sales in the US as it can capitalize on its already impressive GM Cruise, which some analysts have advanced could already be worth $ 43 billion. Allied Market Research has estimated the global market for self-propelled vehicles at $ 54.23 billion in 2019 and $ 556.67 billion in 2026, and Intel concluded that the annual global market could reach $ 7 trillion a year by 2050. "data-reactid =" 43 "> But the real asset for investors looking for value is that GM can challenge the sales plateau new vehicles in the US if it is able to capitalize According to Allian Market Research, the global market for autonomous vehicles is expected to represent $ 54.23 billion in 2019 and $ 556.67 billion by 2026, according to analysts, according to GMT. Intel concluded that the annual global market could reach $ 7 trillion a year by 2050.

Of course, investors will have a hard decision to choose. What will be the company that will thrive over the decades as driverless vehicles evolve, but if GM bets on GM Cruise, it's certainly a valuable title to consider today. 39; hui.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " More from The Motley Fool "data-reactid =" 45 "> More from The Motley Fool

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Daniel Miller holds shares in Ford and General Motors. Jeremy Bowman holds shares in Ford and General Motors. Jordan Wathen has no position in the mentioned actions. The Motley Fool recommends Ford. The Motley Fool has a disclosure policy."data-reactid =" 53 ">Daniel Miller owns shares in Ford and General Motors. Jeremy Bowman owns shares in Ford and General Motors. Jordan Wathen does not own any of the shares mentioned. The Motley Fool recommends Ford. Motley Fool has a disclosure policy.