The median return for stocks in the Russell indexes is negative year-to-date, with members of the Russell 3000 index, the Russell 3000 Value index, and the Russell 3000 Growth index showing red figures. This trend is attributed to smaller constituents lagging behind, indicating potential upside for these companies.
Despite concerns about expensive equity prices and market averages hitting all-time highs, there are undervalued opportunities worth considering for long-term investors. One such stock is Volkswagen AG (VWAPY), which recently reported its preliminary annual financial results.
In fiscal 2023, VWAPY earned $3.45 per share (versus an estimated $3.29) and generated $348 billion in revenue (compared to an estimated $344 billion). The company's CFO, Arno Antlitz, anticipates a slight increase in global vehicle sales for 2024. Volkswagen aims to boost its market share in North America through a value-over-volume strategy and is focused on optimizing overhead costs.
Volkswagen projects up to 5% revenue growth in 2024, with an operating margin expected to exceed the 7.0% margin from 2023. The company highlights its ability to leverage architecture, software, battery technology, and mobility solutions across its Core, Progressive, Sport Luxury, and Trucks business lines.
For more insights on VWAPY and comprehensive market commentary, interested readers can refer to The Prudent Speculator for free stock picks. It is important to note that shares of the mentioned stocks are held by asset management clients of Kovitz Investment Group Partners, LLC, a registered investment adviser.
