Goldman Sachs Has 5 Quality Value Stocks to Buy for Nervous Investors

Print Email

Citigroup

This top bank stock was hit during the spring and still offers a very solid entry point. Citigroup Inc. (NYSE: C) has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. It provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services and wealth management.

Trading at a still very cheap 8.7 times estimated 2019 earnings, this company looks very reasonable in what remains a pricey stock market. A continuing stock buyback program at the bank also is a positive.

Citigroup investors receive a 2.68% dividend. The $77 Goldman Sachs price objective compares to the consensus price target of $80.44. Shares closed most recently at 68.15.

Expedia

This online travel leader is poised for a potentially big summer of 2019. Expedia Inc. (NASDAQ: EXPE) is the leading internet travel pure-play with exposure to online travel in the United States, Europe and Asia. The company’s portfolio of brands includes Expedia, Orbitz, HomeAway, Travelocity, Hotels.com, Trivago, Egencia, Hotwire, Wotif, Venere and Classic Vacations.

Top analysts see it as a story of improving execution, and they also think that the company is starting to finally match Priceline’s growth metrics. The company has raised the dividend and is buying back stock, and both are shareholder-friendly actions. The analysts noted this when discussing the company’s positive activities:

Expedia’s ongoing investments into expanding property selection in focus markets should contribute positively to growth in room nights, bookings and revenue. Overtime, we see room for better marketing efficiency in these markets as well from efficient customer acquisition.

Expedia investors receive a 1.00% dividend. Goldman Sachs has a $160 target price. The consensus target is $149.10, and shares closed at $130.14.

Lumentum

This top company should continue to benefit big-time from the Microsoft Azure cloud service. Lumentum Holdings Inc. (NASDAQ: LITE) is a provider of optical and photonic products for a range of end market applications, including data communications and telecommunications networking and commercial lasers for manufacturing, inspection and life-science applications.

The Company operates in two segments. Products from its Optical Communications segment include a range of components, modules and subsystems to support and maintain customers in its two primary markets: telecom and datacom. Products from the Lasers segment serve customers in markets and applications such as manufacturing, biotechnology, graphics and imaging, remote sensing and precision machining, such as drilling in printed circuit boards, wafer singulation and solar cell scribing.

Goldman Sachs has set its price target at $69. The consensus target is $65.18, and shares closed at $52.43.

I'm interested in the Newsletter
 

These five stocks all have value characteristics and could be solid investments for investors looking to shift some of their capital away from growth and momentum. With earnings reports for the second quarter due soon, it may make sense to buy partial positions now and see how the results come in.