Value investing is all about finding undervalued stock prices – good companies trading at a relatively low price. Then practice what you’ve learned with our free stock market simulation.
Best Value Investing Stocks
Looking for value? Here’s a list of stocks from U.S. News to get you the best bang for your buck:
| Symbol | Company |
|---|---|
| LMT | Lockheed Martin Corp. |
| CLX | Clorox Co. |
| CURLF | Curaleaf Holdings Inc. |
| VRTX | Vertex Pharmaceuticals Inc. |
| BDX | Becton Dickinson & Co. |
| WFC | Wells Fargo & Co. |
| PNW | Pinnacle West Capital Corp. |
How To Value Invest
Value investing is tricky because the value placed on a business is often subjective. While the information everyone has access to is the same, their valuations can differ greatly. That’s because investors have different risk tolerance. A risk averse investor wants to see dividends and cash flow, but a risk taker might be looking for high growth opportunities.
The intrinsic value of a company is entirely subjective. You can look at historical data but that doesn’t guarantee a trend for the future. The trick to value investing is to buy something for less than what it is worth even though you don’t necessarily know how much it will be worth in the future. That guesswork is what separates great investors from poor ones.
Remember, value investing isn’t just about buying undervalued stocks, its about buying good undervalued stocks. But what makes a good stock? Here are a few tips.
High Dividend Yield
This is the percentage that the stock pays out relative to its price. The higher the better, but its important to only compare in the same industry.
Low Price to Book Ratio
Used to compare market value to book value. The lower the better, it gives you an idea of how much would be left over if liquidated.
Low Price-to-Earnings Ratio
Compares the price of the share to the earnings each share generates. Paying less for more profit is the name of the game.
What is Value Investing?
Value investing is a strategy that involves buying companies that are undervalued in the marketplace. These companies are not hidden gems – they are good companies trading at a lower price than they should be. When we say value, we mean getting a good deal. Its almost like searching for stocks that are on sale.
Value stocks are undervalued compared to their fundamentals. That means that their financials suggest a higher price than what is being charged. This can mean a low price-to-earnings ratio and high dividend yield. The market is not 100% efficient, sometimes there are companies trading for less than they are worth. Finding these stocks is the key to your value investing strategy.
Value Investing Strategy
At its core, value investing is actually quite simple. Just look for companies that are trading for less than they are actually worth. Seems simple enough, but its actually a bit tougher than it looks. In principal, the value investing strategy relies on finding undervalued companies, buying shares and then making money when the market corrects and these previously undervalued companies go up in price. In this way, the strategy is looking for inefficiencies in the marketplace and taking advantage of what the general market sentiment is.
Warren Buffet is the champion of value investing. He always said that it is better to buy a good company at a fair price, than a fair company at a good price, and he’s right. Value investing is not about buying cheap companies and hoping for the best. Its quite the opposite. The value investor isn’t just looking to make a quick buck on a market trend, but to invest in companies that have strong underlying business models. If its good enough for one of the greatest investors of our time, it can work for you.
A long-term strategy is essential for value investing. Do not be wavered by short term factors like volatility or daily fluctuation of prices – a good company is a good company even on a bad day. Questions to ask when looking for high value stocks include: How is the cash flow, are they generating profits from their core business operations, and what is the potential for growth?
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Ranking of Top Stock Newsletters Based on Last 3 Years of Stock Picks as of December 27, 2025
We are paid subscribers to dozens of stock and option newsletters. We actively track every recommendation from all of these services, calculate performance, and share our results of the top performing stock newsletters whose subscriptions fees are under $500. The main metric to look for is "Return vs S&P500" which is their return above that of the S&P500. So, based on December 27, 2025 prices:
Best Stock Newsletters Last 3 Years' Performance
| Rank | Stock Newsletter | Picks Return | Return vs S&P500 | Picks w Profit | Max % Return | Current Promotion |
|---|---|---|---|---|---|---|
| 1. |  Alpha Picks | 82% | 56% | 76% | 1,583% | January Promotion: Save $50 |
| Summary: 2 picks per month based on Seeking Alpha's Quant Rating; consistently beating the market every year since launch; tells you when to sell and they have sold almost half. See complete details in our Alpha Picks Review. Or get their Premium service to get their QUANT RATINGS on your stocks to better manage your current portfolio--read our Is Seeking Alpha Worth It? article to learn more about their Quant Ratings. | ||||||
| 2. |  Zacks Value Investor | 60% | 40% | 54% | 692% | January Promotion: $1, then $495/yr |
| Summary: 10 stock picks per year on January 1st based on Zacks' Quant Rating; Retail Price is $495/yr and includes 6 different services including those below. Read our Zacks Review. | ||||||
| 3. |  Moby.co | 50% | 16% | 74% | 2,569% | January Promotion: Next pick free! |
| Summary: 60-150 stock picks per year, segmented by industry; consistently beating the market every year; retail price is $199/yr. Read our Moby Review. | ||||||
| 4. | Zacks Top 10 | 36% | 15% | 71% | 170% | January Promotion: $1, then $495/yr |
| Summary: 10 stock picks per year on January 1st based on Zacks' Quant Rating; Retail Price is $495/yr and includes 6 different services. Read our Zacks Review. | ||||||
| 5. |  TipRanks SmartInvestor | 20% | 9% | 62% | 464% | Current Promotion: Save $180 |
| Summary: About 1 pick/week focusing on short term trades; Lifetime average return of 355% vs S&P500's 149% since 2015. Retail Price is $379/yr. Read our TipRanks Review. | ||||||
| 6. |  Action Alerts Plus | 27% | 5% | 66% | 208% | Current Promotion: None |
| Summary: 100-150 trades per year, lots of buying and selling and short-term trades. Read our Jim Cramer Review. | ||||||
| 7. | Zacks Home Run Investor | 5% | -0.4% | 45% | 241% | January Promotion: $1, then $495/yr |
| Summary: 40-50 stock picks per year based on Zacks' Quant Rating; Retail Price is $495/yr. Read our Zacks Review. | ||||||
| 8. | Dogs of the Dow Strategy | 16% | -1.8% | 43% | 44% | Current Promotion: None |
| Summary: Buy the 10 highest yielding dividends stocks in the Dow Jones Industrial Average on January 1st and sell on Dec 31st each year. | ||||||
| 9. | IBD Leaderboard ETF | 11.4% | -1.8% | n/a | n/a | January Promotion: NONE |
| Summary: Maintains top 50 stocks to invest in based on IBD algorithm; Retail Price is $495/yr. Read our Investors Business Daily Review. | ||||||
| 10. |  Stock Advisor | 34% | -3.9% | 75% | 289% | January Promotion: Get $100 Off |
| Summary: 2 picks/month and 2 Best Buy Stocks lists focusing on high growth potential stocks over 5 years; Retail Price is $199/yr. Read our Motley Fool Review. | ||||||
| 11. | Zacks Under $10 | -0.2% | -4% | -4.3 | 263% | January Promotion: $1, then $495/yr |
| Summary: 40-50 stock picks per year based on Zacks' Quant Rating; Retail Price is $495/yr. Read our Zacks Review. | ||||||
| 12. | Rule Breakers | 34% | -5.1% | 69% | 320% | Current Promotion: Save $200 |
| Summary: Rule Breakers is included with the Fool's Epic Service. Get 5 picks/month focusing on disruptive technology and business models; Lifetime average return of 355% vs S&P500's 149% since 2005; Now part of Motley Fool Epic. Read our Motley Fool Epic Review. | ||||||
| Top Ranking Stock Newsletters based on their last 3 years of stock picks covering 2025, 2024, and 2023 performance as compared to S&P500. S&P500's return is based on average return of S&P500 from date each stock pick is released. NOTE: To get these results you must buy equal dollar amounts of each pick on the date the stock pick is released. Investor Business Daily Top 50 based on performance of FFTY ETF. Performance as of December 27, 2025. | ||||||