4 Secure Stocks To Combat Fed's Overvaluation Fears

Additionally, skepticism over Trump’s ability to push through industry friendly measures has been adding to investors’ worries. Trump’s failure to push through the new healthcare bill has already queered the pitch for his policy proposals. However, he has been quick to shift the narrative toward tax reforms. But now House Speaker Paul Ryan has indicated that such changes may not take place in a hurry. Speaking on Washington on Wednesday, Ryan said that tax reforms could take even longer than replacing the ACA with a new healthcare law.

Our Choices

The central bank’s concerns about stock valuations have come at a point when such a feeling has begun to gain currency among a section of investors. Additionally, confidence about Trump’s ability to push through industry friendly measures has begun to wane.

In such a situation, it makes good sense to pick value stocks with low beta, which could protect gains made recently. Our selection is also backed by a good Zacks Value Score and Zacks Rank.

We narrowed down our choices with the help of our new style score system.

Our research shows that stocks with a Value Style Score of ‘A’ or ‘B’ when combined with a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) offer the best investment opportunities in the value investing space.

Tech Data Corporation (TECD - Free Report) is a leading provider of internet technology products, logistics management and other value-added services.

Tech Data holds a Zacks Rank #1 (Strong Buy) and has a Value Style Score of ‘A.’ The stock has a beta value of 0.88. The forward price-to-earnings ratio (P/E) for the current financial year (F1) is 9.65, lower than the industry average of 11.95. It has a PEG ratio of 0.42, lower than the industry average of 1.23.The stock has returned 5.6% year to date, outperforming the Zacks Retail - Computer Hardware Market sector, which has gained 5.5% over the same period.

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