4 Value Stocks for 2013


Roy Ward Image Roy Ward Chief Analyst, Cabot Benjamin Graham Value Investor

Growth has been the hot sector for more than a year now, but the growth boom is a bit long in the tooth, while this quartet of value plays have a lot of headroom this year and beyond, observes J. Royden Ward of Cabot Benjamin Graham Value Letter.

Which stocks will perform well in 2013? I follow value stocks closely. For the past several decades, value stocks have outperformed growth stocks consistently, but during the past 15 months, growth stocks have outperformed value stocks.

During the past three months, though, value stocks have begun to outshine growth stocks. I believe 2013 will be an exceptional year for value stocks. Top-notch companies in leading industries are clearly undervalued and look very attractive.

I scanned my database to find five stocks with the right credentials to perform very well in 2013. My five picks are the stocks of US companies with exceptional prospects for 2013. All of my stock choices pay dividends, and all are selling at bargain prices. The Gold ETF does not pay a dividend but is selling at a bargain price.

My first recommendation is BlackRock (BLK). BLK is the largest publicly traded investment management company in the world, with assets under management totaling $3.7 trillion.

The company offers a variety of investment and advisory products and services to institutional and individual investors. The 2009 acquisition of Barclays Global Investors, manager of all iShares ETFs, doubled BlackRock's revenues and added significant profits.

BlackRock is best known for its expertise in fixed-income asset management.