Despite markets continuing to hover near all-time highs, exuberance appears to have been replaced by cautious optimism.
The artificial intelligence boom is still very much alive, and merely the mention of an AI deal is enough to pop a large-cap stock over 10% in a single day. But the large tech stock valuations are getting stretched even further, U.S. employment numbers are weak, and the federal government shutdown is beginning to cause economic hardship.
It's been more than six months since the market experienced a 10% correction. Many investors are now bracing for a drawdown instead of a Santa Rally to end the year.
Suppose you're sitting on significant unrealized gains and are not as bullish on growth as you were in July. In that case, you might want to consider an allocation to value stocks to minimize losses and even add a little income through dividends.
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Today, we'll look at five value stocks that offer portfolio protection in volatile environments. Each stock has a market cap of $3 billion or higher with a Benzinga Edge Value score of at least 90.
Sasol Ltd.
Benzinga Edge Value Score: 99.66
Sasol Ltd. (NYSE:SSL) is also a play on several other investment themes we've mentioned in this space lately: emerging markets and commodities. The company is a South African-based mining and gas firm that produces integrated chemicals for domestic and international customers. The stock has a market cap of $3.94 billion and currently trades at just 10 times earnings with a Price-to-Book (P/B) value of 0.4 and a Price-to-Sales (P/S) ratio of 0.27. Not only is the stock undervalued compared to U.S. competitors, but it's also cheap compared to its emerging-market peers, which is why it scores over 99 on our Benzinga Edge Value rankings.
The stock has been volatile over the last few months; however, there's plenty of evidence of upward momentum. The summer Golden Cross kicked off the uptrend, but these gains were given all back last month as the stock dipped under the 50-day simple moving average (SMA). An oversold signal on the Relative Strength Index (RSI) caused the price to bounce off the 200-day SMA, and now momentum is brewing around the 50-day SMA again. A decisive breakout back above the 50-day will likely reignite this rally, making it a key level to watch in the next few sessions.
Gerdau SA
Benzinga Edge Value Score: 97.67
Gerdau (NYSE:GGB) faces more macroeconomic headwinds than most companies on our list, but it also has strong fundamentals and a clean uptrend on the daily stock chart. The company is a Brazilian-based steel manufacturer with a $7 billion market cap and a sales base spread throughout North and South America. Brazilian steel companies are squarely in the crosshairs of the Trump administration's tariffs, but Gerdau derives enough business outside the U.S. to mitigate most of these impacts. The stock trades at 8 times forward earnings, with a P/B value of 0.70 and a P/S ratio of 0.37. It also pays a 3.27% dividend with a healthy 37% payout rate.
On the technical side, the stock has been trending higher since a Golden Cross in August, and it is currently more than 10% above its 50-day SMA. The RSI and Moving Average Convergence Divergence (MACD) also confirm the bullish momentum, which makes GGB a compelling investment for both stock price appreciation and steady income through dividends.
Ecopetrol SA
Benzinga Edge Value Score: 97.47
Ecopetrol (NYSE:EC) is a Colombian oil and gas giant with a $19 billion market cap and annual sales exceeding $30 billion. Colombian oil is another popular Trump tariff target lately. Still, EC shares have fundamental and technical upsides that appeal to value-conscious investors, which explains why the stock is up nearly 20% year-to-date (YTD).
The company's impressive Benzinga Edge Value score is boosted by its Price-to-Earnings ratio of 6.55 and a P/S ratio of 0.64. The technical trends have been volatile, but the bulls still have the momentum advantage. The stock is back above the 50-day and 200-day SMAs, and bullish momentum is building on the MACD. A Golden Cross looks to be on the horizon, which could be a good entry point before the next leg up is triggered.
Seaboard Corp.
Benzinga Edge Value Score: 94.03
Seaboard (NYSE:SEB) is an American industrial conglomerate focused on pork production, processing, and shipping. The Kansas-based company has a $3.5 billion market cap and annual sales of more than $9 billion, plus natural tailwinds from exceedingly high beef and chicken prices. The stock trades at just 9 times earnings, with a P/S ratio of 0.36 and a P/B ratio of 0.71, making it far cheaper than competitors like Cal-Maine Foods and Mondelez International.
Bullish momentum had been weakening in the stock since Q2, but recent signals point to a revival. The RSI tripped an Oversold signal late last month, which caused a massive five-day rally of more than 14%. But more importantly, the rally took the share price back above the 50-day SMA for the first time since September, hinting that the bullish uptrend is ready to resume.
Fluor Corp.
Benzinga Edge Value Score: 91.46
Fluor Corp. (NYSE:FLR) is a staple of the American engineering and construction industry, with a $7 billion market cap and annual sales exceeding $16 billion. The stock hit a 20-year low during the COVID-19 pandemic, trading under $7 per share for the first time. But now the stock is up more than 250% in the last five years, although 2025 has been a turbulent year for FLR investors. A big earnings miss in Q2 caused the stock to plummet 27% in a single day; shares are now down nearly 4% on the year. However, the company is now highly undervalued, trading at just 2 times earnings with a P/S ratio of 0.47.
Investors might be starting to take notice of the attractive valuation. The stock is up 15% in the last three months, and recently broke back above its 50- and 200-day SMAs. This momentum reversal triggered a Golden Cross, but the upside could be short-lived if FLR repeats its Q2 disaster when Q3 results are released on Friday.
Editorial content from our expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies, which are neither expressly nor impliedly approved or endorsed by Benzinga.
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