My 3 Favorite Value Stocks to Buy Right Now
Will Healy, The Motley Fool
Sun, August 9, 2026 at 2:05 PM GMT+5:30
5 min read
- NVDA
+2.27% - AMZN
+0.82%
The state of today’s stock market might make some investors nervous. As they ponder the implications of the indexes selling close to all-time highs, they might become anxious
However, despite such conditions, many top names remain value stocks. Consequently, investors can still find bargains in this market, and knowing that, investors should consider investing in these three companies
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
1. Amazon
The inclusion of Amazon(NASDAQ: AMZN) on a list of value stocks might come as a surprise. Throughout its nearly 30-year trading history, the company delivered outsize gains by pioneering the e-commerce and cloud industries. These innovations often came with huge valuations
Nonetheless, its successes have taken its P/E ratio to 22, a level below the S&P 500average of 30. This has occurred as a rising stock price led to its market cap having crossed $3 trillion for the first time before pulling back. Despite that milestone, its rising stock price may not have kept up with its revenue and profit growth
The company just released its results for the second quarter of 2026, and its net sales climbed 20% yearly to $201 billion. All three of its segments grew net sales in the double digits, with AWS, the cloud segment, increasing revenues by 37% over that period
Moreover, the P/E ratio is so low because its Q2 net income grew by 244% yearly to $62.6 billion, increasing the earnings portion of the ratio
Admittedly, this growth does not come without some concerns. The company just announced it was raising capital expenditures (capex) spending for the year from $200 billion to $220 billion. This is a staggering sum even for Amazon, and the company had to issue bonds to cover this spending despite holding about $123 billion in liquidity
Nonetheless, Amazon’s results indicate that the huge investment has paid off for the company. With the valuation falling as the stock price rises, it is hard to bet against this company
2. Target
Target(NYSE: TGT) has spent most of the 2020s in the wilderness. Supply chain issues early in the decade caused a massive overhang. This occurred as the company alienated customers with political stances unrelated to its business and allowed its stores to become rundown and messy
Fortunately, Target has shaken up its leadership team, eliminating some corporate jobs and hiring CEO Michael Fiddelke as its CEO. Fiddelke pledged to invest $5 billion in improving its stores and supply chain. He has also shifted to higher-margin product mixes and modified its advertising strategy
