3 Overlooked Value Stocks to Buy and Hold for Long-Term Gains

Market Volatility and Investment Strategies - The CBOE Volatility Index (VIX) spiked to its highest level in years in early August and again at the start of September, prompting investors to consider value investing strategies [1] - Value investing focuses on identifying companies with strong fundamentals that are currently undervalued, with the expectation of price corrections leading to increased share value [1] Key Metrics for Value Stocks - Investors utilize metrics such as price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, free cash flow, and debt-to-equity ratio to identify value stocks [2] - Attractive value stocks typically show undervaluation compared to earnings and assets, potential for future growth, and a history of competitive dividend payouts [2] Delta Air Lines Analysis - Delta Air Lines, with a market capitalization exceeding $27 billion, is considered undervalued with a forward P/E ratio of 7.2, significantly lower than competitors [3] - Despite challenges, Delta reported record adjusted operating revenue of over$15 billion, a more than 5% increase year-over-year, while maintaining a competitive double-digit operating margin [4] - Delta is recognized as a leading airline, consistently ranked highly by industry awards, indicating stability for long-term investors [5] Ally Financial Overview - Ally Financial has a forward P/E ratio of 11.7, below the sector average, and a manageable debt-to-equity ratio of 1.4 [6] - The company offers a dividend yield of 3.03% and has shown a 16.45% annualized dividend growth over three years, making it an attractive option for passive income [6][7] T-Mobile US Valuation - T-Mobile US, with a market capitalization of over $231 billion, has a PEG ratio of 0.74, suggesting it may be undervalued despite a 44% return in the last year [9] - The company has consistently delivered better-than-expected financial results, positioning itself as a leader in the 5G space [9]