Value has beaten growth substantially in 2022. For example, the Vanguard Value ETF (VTV) has dropped by less than 5% while the Vanguard Value Fund (VUG) has fallen by more than 20%. This performance has been driven by the rising fears of a recession and the extremely hawkish Federal Reserve. Here are some of the best value stocks to buy in 2022.
Brookfield Asset Management
Brookfield Assset Management (NYSE: BAM) is one of the biggest asset management in the world with more than $725 billion in assets under management. The company is involved in virtually all sectors of the economy through its energy, infrastructure, private equity, real estate, and credit & insurance solutions.
Brookfield’s energy business has $68 billion in assets while its infrastructure segment has over $140 billion. Its private equity business has more than $105 billion in assets. As part of its plan to create shareholder value, the company plans to spin its asset management division which has about $364 billion.
Brookfield stock price has dropped by about 10% this year but there is more room that it will bounce back. The spin-off will create more value for shareholders.
Moody’s Corporation
Moody’s Corporation (NYSE: MCO) is a leading American company that provides solutions to businesses and governments. The company makes money in two key segments like Moody’s Investor Service and Moody’s Analytics. The firm rates over 35,000 companies, countries, and other organizations among others.
Moody’s is a stable company that has seen its revenue and income grow rapidly in the past few months. Its total revenue has jumped from $2.7 billion in 2012 to more than $6.2 billion in 2021. Its net income has risen to over $2 billion. This is notable since Moody’s earnings have been a bit organic than S&P Global, which has spent billions on acquisitions.
Moody’s stock price has crashed by 24% this year, making it a relatively cheap value stock for patient investors.
Blackstone
Blackstone (NYSE: BX) is another value stock to buy. It is a large private equity company that has over $915 billion in assets under management. The firm’s business is divided into real estate, private equity, hedge fund solutions, and credit and insurance. It is the biggest player in real estate industry.
Blackstone’s total revenue has grown from over $3.9 billion in 2012 to more than $22 billion in 2021. Its net income has also moved from $829 million to over $12 billion. The Blackstone stock price has outperformed the S&P 500 index this year and there is a likelihood that the trend will continue.
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