Value stocks are shares in companies that trade at relatively low multiples compared to their earnings and growth potential. They are a great way for investors to minimize risk by betting on mature and profitable businesses. Dollar General (NYSE: DG) and Electronic Arts (NASDAQ: EA) are two value stocks that would make great buys in October -- they boast modest valuations, and their business models work well in this challenging economic environment .
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Dollar General is a discount retailer that focuses on low-priced consumer staples. With a P/E multiple of 23, the stock has a modest valuation compared to the S&P 500's average of 29. And it seems poised for continued success because of its recession-proof business model and expansion into higher-margin goods like houseware and self-distributed fresh foods.
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2 Top Value Stocks to Buy in October