Bargain Global Stocks for a Recession
There are some reportedly top bargain global stocks available that could help you face a recession, says an expert analyst.
One of the most important aspects of successful investing and stock trading is being prepared for disasters striking the stock market and the economy. One such eventuality is a recession.
When recession strikes, a lot of plans go out the window. But some stocks can help you weather the storm. Currently, investors are going through a struggle to get hold of US stocks, which are reasonably priced, amidst equity prices that are at record high.
Global Stocks Suggestions by an Expert Analyst
One of the analysts, though, is able to find many buying opportunities as the founder and CEO of an investment manager. Sarah Ketterer is able to spot financially strong and cheap contrarian plays that exist in foreign stocks. These stocks could perform well when the economy takes a downturn, according to this article by Barron’s. Her Causeway International Value (CIVVX) fund has reportedly managed to top the other funds over a year, 3 years, 5 years, 10 years and even 15 years. This year too, the fund has topped others. Here are her suggestions:
Volkswagen or VW ($VKLAY) is one of these stocks.
The company has a financial situation that is quite strong though its valuation is pretty modest. As the abovementioned article by Barron’s came out, $VKLAY stock has been trading at much lower forward earnings multiple than many of the other companies in Europe. The infamous diesel emissions deception scandal affected VW’s image significantly but it still managed to maintain a strong financial position.
Another stock recommended by Ketterer is chemicals and paint manufacturer Akzo Nobel ($AKZOY),
whose shares offer a 5% free-cash flow yield and trade at a nine times enterprise value-to-earnings ratio even before depreciation, taxes, interest, and pay off for 2018 are considered. $AKZOY has a market presence that is really strong and a pretty strong financial position as well. Its securities have experienced a year-to-date rise of over 50%.
China Mobile Ltd. ($CHL) is a telecommunications company at the head of the market in China,
having 800 million subscribers. China is the most populous market in the world and being a market leader in this huge market has given the company the ability to make up a favorable cash position for itself. It also recently paid a 7% special dividend. Ketterer believes that the company’s revenue could grow quicker than the country’s economy.
Encana ($ECA) is an energy producer based in North America.
It is conspicuous by its valuation that is unusually low. Ketterer observes that this company is trading in a manner that would have us think that crude oil is selling at $30 per barrel though it’s actually trading at around $50 per barrel. Encana has investments in the Permian Basin and Eagle Ford Shale. Its stock could significantly rise when oil prices keep rising.
Suggestions by expert analysts and investors could give some guidance to new and inexperienced traders and investors who could find the stock market a bit overwhelming. Hand in hand with an easy to use platform and a broker dealer that provides free trading, new investors to the markets should feel at home using TradeZero. There, investors can access a few different trading platforms depending on experience level or investing style.