4 PEG-Based Value Stocks to Neutralize Trump 2.0-Led Market Volatility

Market Volatility and Investment Strategies - The equity market has experienced notable volatility due to the commencement of Trump 2.0, with initial positive reactions followed by reversals influenced by policy announcements regarding tariffs and immigration [1] - Investors are uncertain about their strategies during such political and macroeconomic upheavals, often leaning towards value investing as a response to market volatility [2] Value Investing Insights - Value investing can present opportunities when other investors sell stocks at lower prices during market uncertainty, allowing value investors to acquire stocks at discounted rates [2] - However, value investing has drawbacks, including the risk of "value traps," where stocks underperform over time due to persistent issues [4] PEG Ratio and Investment Metrics - The PEG ratio, defined as (Price/Earnings)/Earnings Growth Rate, is a crucial metric for value investors, with a lower PEG ratio being preferable [6] - The PEG ratio helps identify intrinsic stock value, although it has limitations, such as not accounting for changing growth rates over time [6] Screening Criteria for Value Stocks - Effective screening for value stocks includes criteria such as a PEG ratio less than the industry median, a P/E ratio below the industry median, a Zacks Rank of 1 or 2, market capitalization over $1 billion, and an average 20-day volume greater than 50,000 [7][8] Selected Value Stocks - Wells Fargo & Company (WFC): A leading financial services company with a Zacks Rank of 1, a Value Score of B, and a five-year historical growth rate of 12.1% [9][10] - Exelixis (EXEL): An oncology-focused biotechnology company with a Zacks Rank of 2, a Value Score of B, and a long-term expected growth rate of 23.7% [11][12] - Delta Air Lines (DAL): A major U.S. airline with a Zacks Rank of 2, a Value Score of A, and a five-year historical growth rate of 51.3% [12][13] - The Greenbrier Companies (GBX): A supplier of freight transportation equipment with a Zacks Rank of 1, a Value Score of B, and a long-term expected growth rate of 11.7% [13][14]