My 3 Favorite Value Stocks to Buy Right Now
2026-08-09 08:15
•Will Healy •The Motley Fool
••••••• •••• Axe Cap view
Three Global Value Plays, but What About SA?
Amazon, Target, and Nvidia show strong value globally, yet South African markets need a cautious local view.
Amazon’s growth is eye-catching, with net income surging 244% year on year and a P/E ratio well under the US average. Similarly, Target’s turnaround and steady dividend hike make it a reliable wider consumer play. Nvidia’s stratospheric revenue growth and dominance in AI chips explain its hefty valuation. That said, these stories barely touch South Africa’s reality. The rand’s recent weakness against the dollar (USD/ZAR hovering around 19.5) partially offsets gains when converting returns back home. For JSE investors, direct exposure to US tech via Prosus or Naspers is long known but the risk of rand depreciation remains a drag. Meanwhile, local blue chips like Standard Bank and MTN continue to offer steadier dividends and less FX risk. If your portfolio skews offshore, these global winners have merit, but domestic investors might be better off trimming highly cyclical rand-exposed names until the currency stabilizes. This view risks being invalid if the rand suddenly reverses course sharply or if local stocks deliver unexpected earnings strength. this is just our opinion and not financial advice
Globally, watch for selective buys in Nvidia and Amazon through rand-hedged ETFs, but within South Africa, favor steady dividend payers like Standard Bank and MTN while keeping rand volatility in mind.
- USD/ZAR
- Naspers
- Standard Bank
- MTN
- Rand volatility eroding offshore gains
- Local economic shocks impacting JSE dividend stocks
6/10
The article identifies Amazon, Target, and Nvidia as undervalued stocks despite recent market strength. Amazon's P/E ratio of 22 remains below the S&P 500 average despite strong earnings growth of 244% YoY. Target has recovered from years of decline under new leadership with improving sales and a 55-year dividend growth streak. Nvidia, while up 1,800% since 2022, still offers value given its 855% revenue growth and dominant 75% market share in AI accelerators.
Our take is based on reporting first published by The Motley Fool.