3 Value Stocks That’ll Make You Richer in the Fourth Quarter (and

For more than 12 years, growth stocks have been the talk of Wall Street. Historically low lending rates and dovish monetary policy from the nation’s central bank have paved the way for fast-paced companies to borrow at attractive rates.

But over the very long run, value stocks have outperformed growth stocks. A study from Bank of America/Merrill Lynch found that value stocks delivered an average annual return of 17% between 1926 and 2015, which compared to a 12.6% annual return for growth stocks over the same period. While investors are unlikely to complain with double-digit annualized returns, it’s worth noting that value stocks have been the superior place to be during economic recoveries and periods of expansion.

As we move into the fourth quarter, the following three value stocks stand out for all the right reasons and have the potential to make shareholders a lot richer in the short term and, most importantly, well beyond.

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Bristol Myers Squibb

First up, we have what’s arguably the cheapest Big Pharma stock on the planet, Bristol Myers Squibb (NYSE:BMY).

Before diving into the specifics about Bristol Myers, I believe it’s important to cover the safety inherent in most healthcare stocks. Since we don’t get to choose when we get sick or what ailments we develop, demand for prescription drugs, medical devices, and healthcare services tends to remain steady no matter how well or poorly the U.S. economy and stock market are performing. This creates a steady floor of cash flow for established healthcare companies.

As for Bristol Myers Squibb, it has two major catalysts that are powering its proverbial engine. First, the company’s internal drug-development program has notched numerous wins. Eliquis, which was developed in cooperation with Pfizer, has become the world’s leading oral anticoagulant and is pacing $10 billion (or more) in sales in 2021.

But it’s cancer immunotherapy Opdivo that may offer even more promise. Wall Street has been dragging its heels on Opdivo since it failed to hit the mark in a late-stage lung cancer study back in 2018. Yet analysts appear to be overlooking that Opdivo already has 10 approved indications in the U.S. and it’s being examined in dozens of clinical trials as a monotherapy or combination treatment. There’s a very good chance Opdivo’s label expands over time, which’ll only add to the $7 billion in sales it generated last year.

The second catalyst for Bristol Myers Squibb is acquisitions. In late 2019, it closed a cash-and-stock deal to buy cancer and immunology drug company Celgene. Multiple myeloma drug Revlimid was the true prize of this acquisition.

Revlimid has grown its annual sales by a double-digit percentage for more than a decade, with increased duration of use, strong pricing power, and label expansion opportunities in its sails. Best of all, Revlimid won’t face a flurry of generic competition until after Jan. 31, 2026, which…