Value Stocks to Fill Out Your Portfolio


The objective of my Cabot Enterprising Model is to recommend various stocks that will fit your investment goals and that will fill any voids in your portfolio. This month’s Model offers 16 stocks that are clearly undervalued, including many stocks with extraordinary growth prospects.

To find the stocks that are the biggest bargains, simply locate stocks with Value Ratings above the average Value Rating of 3.29.

To choose stocks with great growth potential, select stocks with Growth Ratings above the average Growth Rating of 3.71.

To find great income stocks, select stocks with Dividend Yields at or above the 1.3% average.

To meet my goal of presenting stocks that will round out your portfolio, I use six different approaches to ferret out bargains that other analysts have missed. If the diversification of your portfolio is incomplete, you’ll find the right stocks to fill the gaps in the Enterprising Model recommendations.

My Classic Value, Graham-Buffett, Undervalued Canadian, NCAV, Low P/BV and Low PEG methodologies are used independently to find 16 stocks that are undervalued but different from Cabot Value Model stocks. I apply the six different methodologies to find a wide variety of companies because I believe these stocks will not only add variety to your portfolio, but also reduce your risk.

This month’s recommendations contain a preponderance of stocks derived from the Low PEG Ratio Analysis. If you want to stay in step with the current stock market environment, you’ll want to include growth stocks selling at reasonable prices.

This is an excerpt from Cabot Benjamin Graham Value Investor, which features the very best undervalued stocks to buy right now. Chief Analyst J. Royden Ward tells you exactly which undervalued stocks to buy and when to take profits. This advisory is ideal for conservative investors.

Subscribers' comments on Cabot Benjamin Graham Value Letter

Stock Picks

Loews Corp.

This undervalued stock has strong future earnings growth expectations.


Biogen is the market-share leader in treating multiple sclerosis.


One of Paul Godwin’s favorite stocks in his Cabot Emerging Markets Investor portfolio.

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