Looking for the best value stocks? Tracey Ryniec, Stock Strategist at Zacks Investment Research, discusses two stocks that might be worth a closer look by
value investors: Chubb Limited (CB - Free Report) and Unitedhealth Group (UNH - Free Report) .
Both companies have forward P/Es well below the average of the S&P 500, which still remains elevated at 16. They also are in favor with analysts, as
2016 and 2017 earnings estimates have been moving higher.
They are both Zacks Rank #1 (Strong Buys.)
While you may think insurance is boring compared to other sectors, its not a bad place to hide out in while the market is rough. Both companies pay
dividends. Chubb is a property & casualty insurer and Unitedhealth Group is a health insurer.
Unitedhealth Group is even one of those rare stocks that has value AND growth as earnings are expected to rise another 19% in 2016.
Additionally, Unitedhealth Group shares have actually outperformed over the last 2 and 5 years, returning 65% and 205% respectively. That is a better
return than even tech titan Apple during that same time.
Before you rule out insurers altogether, find out why Tracey likes the insurance companies in 2016 and you should too.