S&P 500: Solid Value Companies

For those Valueexpectations.com readers who consider themselves value oriented investors, we have provided a good starting list of solid value companies that look attractive as potential investment opportunities for the long term. This list is a good place to start when looking for potential companies to add to your portfolio. The Applied Finance Group (AFG) considers companies with a Market Value/Invested Capital (MV/IC) in the bottom half of the universe as value companies.

To come to our list of attractive potential value plays, we ran those companies in the bottom half of MV/IC through AFG’s buy criteria that includes Economic Margin (how profitable they are), Valuation, Management Quality (how well management is running the business) as well as other quality checks to ensure that these companies are the most likely value companies to outperform. All 10 of these companies ranked above their sector peers in expected improvement of Economic Margins and in valuation attractiveness which has proven to be a good starting point when looking to identify companies likely to outperform their benchmark.