UMC - 7 Best Bargain Stocks to Buy in November

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December generally represents the gift-giving season in the United States. For investors, however, the best bargain stocks to buy may be had this November.

Primarily, the recent lighter-than-expected inflation report suggests that at some point, the Federal Reserve may let off the gas when it comes to its monetary tightening policy. Of course, that sounds good for equities. But it’s also the reason why this month is critical.

Both the major indices and individual names among best bargain stocks to buy have performed quite well recently. For instance, the S&P 500 has lost 17% year-to-date (YTD). That’s an improvement from the 20% YTD (or lower) below parity it had been at earlier this year. Should momentum continue over the next several weeks, acquiring compelling securities in December probably makes less sense for investors.

To be fair, there’s no guarantee that a rally will continue unabated. Nevertheless, if you have conviction in this latest bullish surge, the names below represent some of the best bargain stocks to buy in November.

Best Bargain Stocks: BHP Group (BHP)

For forward-looking investors, BHP Group (NYSE:BHP) makes for an enticing case for best bargain stocks to buy. Fundamentally, the mining specialist focuses on the commodities of tomorrow. For instance, its copper projects should increase in demand for many years to come, as copper is a crucial component of electric vehicles (EVs).

Unsurprisingly, BHP stock has held its own so far this year, too. Shares are up more than 8% on YTD basis. In the trailing month, shares are also up more than 20%. Investors have started to recognize the importance of the company’s underlying business. Yet, despite the increased attention, BHP remains one of the best bargain stocks to buy.

Per data from Gurufocus, the market prices BHP at about 5 times trailing-12-month (TTM) earnings. In contrast, the industry median stands closer to 12 times. This company also enjoys a stable balance sheet and high business quality, as reflected by its return on equity (ROE) of 65%.

Tyson Foods (TSN)

One of the largest food processors, Tyson Foods (NYSE:TSN) fundamentally offers an indispensable service. However, the company currently suffers from a bit of a scandal. I don’t want to get too bogged down on non-financial matters, but the company’s CFO was recently arrested after entering the wrong home. It’s an embarrassing situation that may have detracted from Tyson’s investment narrative.

Still, if that is the case, market participants should really pounce on TSN stock while they have a chance. Financially, this is one of the best bargain stocks to buy based on traditional valuation metrics. According to Gurufocus, TSN stock trades at about 6 times TTM earnings. In contrast, the industry median is closer to 17 times.

If that isn’t convincing enough, the market prices TSN stock at 8.6 times forward earnings. For the industry, the median forward price-to-earnings (P/E) ratio stands at 15 times. And of course, this company also benefits from a stable balance sheet and high business quality, given its 22% ROE.

Best Bargain Stocks: CF Industries (CF)

A manufacturer and distributor of agricultural fertilizers and other industrial products, CF Industries (NYSE:CF) stock is powerfully relevant. However, CF is relevant for some particularly cynical reasons. Essentially, Russia’s invasion of Ukraine has put a lot of pressure on global food supply chains, with both Ukraine and Russia representing major players in terms of food production.

Shares of CF Industries have skyrocketed more than 50% YTD. However, in the trailing six months, CF has only just stayed in the green. Still, CF does make for one of the best bargain stocks to buy based on valuation, although it is not nominally the cheapest idea in the market. According to Gurufocus, shares trade for about 7 times TTM earnings. This compares favorably to the industry median of 13 times.

From another angle, CF’s trailing P/E ratio ranks better than well over 75% of the competition. Aside from its solid value, the company also enjoys a stable balance sheet and excellent profitability margins that rank among the sector’s elite.

United Microelectronics (UMC)

Founded as one of Taiwan’s first semiconductor firms, United Microelectronics (NYSE:UMC) enjoys a rich history. Unfortunately, the Taiwan angle does makes it a bit of a tricky narrative among the best bargain stocks to buy. As tensions rise between Taiwan and China, at least some investors have shied away from UMC stock.

Perhaps unsurprisingly, UMC has dropped 37% YTD. However, the near-term momentum for shares has been impressive. In the trailing month, the stock has boomed more than 20%. Yet, despite this dynamic, shares also trade hands at a little over 7 times trailing earnings. In contrast, the industry median is around 17 times.

On top of this, UMC stock is priced at 7.5 times forward earnings, ranking better than 91% of the industry. The company features solid revenue growth and excellent profitability margins as well. Once the global economy normalizes, this name could move significantly higher, making it one of the best bargain stocks to buy.

Best Bargain Stocks: Huntsman (HUN)

A multinational manufacturer and marketer of chemical products for consumers and industrial customers, Huntsman (NYSE:HUN) brings a lot of relevance to the table. Essentially, it plays the role of stagehand for the economy. It may not receive the loud applause directed at those in the spotlight, but the chemicals business undergirds many of today’s top innovators.

To be sure, even a broadly relevant enterprise like Huntsman has suffered throughout 2022. Since January, HUN stock has dropped around 17%, roughly matching the performance of the S&P 500. However, the Street appears to have woken up to the upside opportunity here. In the trailing month, shares are up about 14%.

Better yet, per Gurufocus, HUN stock rates as “modestly undervalued.” Currently, it trades at 5.4 times trailing earnings. But more importantly, shares trade at 10 times forward earnings while the industry median forward P/E is about 14 times. Combined with other positive attributes like balance-sheet stability and high quality of business, HUN easily represents one of the best bargain stocks to buy.

Louisiana-Pacific (LPX)

As a U.S. building materials manufacturer, Louisiana-Pacific (NYSE:LPX) stock may be somewhat of a mixed bag. With global recession fears rising, the narrative here may encounter significant challenges. However, some room for optimism still exists. Mainly, President Joe Biden and his administration’s initiatives to rebuild infrastructure may boost this company’s profile.

Of course, it may take some convincing from the broader market. Since the start of the year, LPX stock has dropped more than 20%. But the bulls may still counter that near-term momentum favors LPX. For instance, in the trailing month, Louisiana-Pacific has moved up by double digits.

Even though traders have been bidding up LPX enthusiastically, it also remains one of the best bargain stocks to buy. Currently, shares trade at less than 4 times TTM earnings. This compares favorably to the industry P/E ratio of 13 times. Louisiana-Pacific also features a stable balance sheet (with a high cash-to-debt ratio) and outstanding profitability margins.

Best Bargain Stocks: Meta Platforms (META)

When it comes to the best bargain stocks to buy, I’m sure that Meta Platforms (NASDAQ:META) isn’t everyone’s cup of tea. Frankly, the losses this company has suffered are jarring. As several analysts have pointed out, Meta Platforms’ capital expenditures toward its metaverse initiatives appear problematic. Further, neither the organization nor the consumer base seem to understand the point of the metaverse.

How else can you explain the horrible hemorrhaging that has occurred so far this year? Since January, META stock has plunged more than 65%. Still, hardened bulls apparently believe the company has lost too much value, thus making it one of the best bargain stocks. In the last five sessions as of Nov. 14, META stock has gained more than 20%.

To be clear, this doesn’t even begin to make up for the horrors. But owning one of the biggest social media platforms in the world does garner some unparalleled relevance for the company. If that isn’t enough to convince you, maybe the great deal here might. META stock’s trailing P/E ratio is about 11 times and its price-earnings-growth (PEG) ratio is 0.4 times. Both of these metrics rank favorably — and conspicuously lower industry norms.

On the date of publication, Josh Enomoto did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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