LM - These 3 Value Stocks Are Absurdly Cheap Right Now
The major stock market indexes were all up in July as the market continued to come back from its March lows. However, there is still uncertainty for many businesses. The pandemic has kept spreading and the recession has dragged on, with a historic GDP decline last month.
Value investors who think they may have missed the boat should think again -- there are still some underpriced performers out there. Here are three value stocks that are absurdly cheap right now, but probably won't be for long.
The nation's second-largest bank, Bank of America (NYSE: BAC), is ridiculously cheap right now. It is down about 29% on the year through Tuesday's close, trading at about $25 per share with a price-to-earnings ratio of around 12. At that valuation, it's an opportune time to scoop up some shares. Just ask Warren Buffett -- Berkshire Hathaway plowed about $1.7 billion into the stock in recent weeks. Berkshire Hathaway now has an 11.3% stake in Bank of America, its second-largest holding after Apple.