6 Critical Factors for Identifying Lucrative Value Stocks…

Editor’s Note: We’ve been pounding the table that 2022 will be the year of value stocks. Even with the recent market rally, growth stocks are significantly underperforming value stocks. And we think that will remain that case for the rest of the year.

Why? The market remains overpriced. Inflation is everywhere. Many stocks aren’t worth the valuations they’re trading at.

Below, Karim reveals six critical factors you should look for when value hunting in the current market environment.

And he’s found one specific stock under $2 that he believes is an all-time buying opportunity. He just released a presentation on this stock, which he has dubbed “The Last Great Value Stock.”

If you are looking for details on a stock under $2 with 10-bagger potential or better in the years ahead… click here.

-Ryan Fitzwater, Associate Publisher


I am sure you’ve heard of a company called Nintendo…

The Japanese company behind famed video games like Super Mario Bros., The Legend of Zelda and Donkey Kong. Those video games were all the rage back in the late 1980s and 1990s.

I still remember how hard it was to avoid those bananas in Super Mario Kart.

But what happened later on, in the 2000s and 2010s, was shocking. Nintendo, the once-amazing video game company, was in trouble.

Through 2014, the company lost about $750 million. The stock was collapsing, dropping almost $80 to just $13.

But then something happened – a reversal.

Nintendo swung from that $750 million loss back to a profit of more than $1 billion over the next three quarters.

So if you’d timed it perfectly and bought in at $13, you could’ve made 515% in profit over the next six years. Talk about a comeback!

But why did this happen? And how can you learn how to spot a comeback like this BEFORE a stock like Nintendo explodes so you can profit as well?

This is a process I’ve spent my life mastering.

And after years of trial and error, I found my groove during the Great Recession in 2007-2009.

I’m really excited to bring this to you because I really believe 2022 is…

The year of the value stock.

Think about it…

The markets are as volatile as ever.

Inflation is rampant. Everything is overpriced. Hardly any stocks are worth the valuations they’re currently trading at.

So what does that mean for you as an investor?

The sad truth is…

Companies with strong fundamentals are going to crash in these markets too.

However, those same companies are going to recover FASTER than other companies. That’s because these companies are truly good investments – not just trades.

So when you, the investor, can identify the difference between a good investment and a simple trade, you can make life-changing profits.

This is why I’ve compiled a checklist for you here.

Six Critical Factors for Value Stocks

These are the top six factors I look for when identifying a value stock.

Now, these items aren’t the only things you should look for, but this list is a great place to start.

Keep this in your pocket on your smartphone. That way, whenever you see a company you might want to invest in, you can use this fundamentals checklist to make sure your research is sound.

Here are the top six things I look for when identifying a value stock:

  1. Market leader – This is pretty straightforward. Ask yourself, “Is this company selling a particular type of product at a higher volume than their competitors?”
  2. Several streams of income – Does this company have other ways of generating revenue beyond its initial product offering? What other products/services does it offer?
  3. Big backlogs (if manufacturing) – Does it have a lot of future orders that have not been filled yet? The forecast of future service/parts ordered will be an accurate forecast for orders in the year ahead.
  4. Strong cash generation capability – Does the company consistently produce cash flows from its ongoing operations?
  5. Established operations – Does the company have sound systems in place so that it runs like a well-oiled machine?
  6. Large institutional ownership – Does the company have a large amount of its stock owned by large entities that manage funds on the behalf of others?

That’s it. Those are the questions you ask to identify a value stock.

Now, for the exciting part…

Today’s Last Great Value Stock

There’s a company out there that checks all the boxes above. And I’m excited to tell you more about it.

This company’s income, including equity sales, swung from a $4.3 billion loss in 2020 to a nearly $3.5 billion profit in 2021.

City analysts estimate that annual earnings will rocket by more than 320% in 2022. It may end up being closer to 500% (similar to Nintendo’s jump).

The company also has a sales backlog of nearly $75 billion.

And based on its current price, it might be the single best value buy in the history of the markets.

Action Plan: Don’t miss out on this all-time buying opportunity. Click here to view my latest presentation on what I call “The Last Great Value Stock.”

There is a major catalyst on the horizon… an announcement coming on May 12… that I believe is going to make this one of the most sought-after stocks in the world.

So now is the chance…

Now is the opportunity to get in right as the recovery sends it soaring.

If you’re looking for a stock under $2 with 10-bagger potential or better in the years ahead… this is it.

Click here to get the details.