With the ASX 200 index hitting a record high this month, value investors may be concerned that there are no suitable options for them right now.
However, they may be wrong to assume that. In fact, analysts believe that big returns could be on offer from the ASX value stocks listed below.
Here's why they could be top buy and hold options for a $5,000 investment:
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Accent Group Ltd (ASX: AX1)
The first ASX value stock to look at is Accent Group. Bell Potter has a buy rating on the footwear retailer's shares with a price target of $2.50. This implies potential upside of over 20% for investors from current levels.
Its analysts are forecasting earnings per share of 13.2 cents in FY 2024 and then 15.5 cents in FY 2025. This means its shares are changing hands for approximately 15.6x FY 2024 earnings and 13.3x FY 2025 earnings.
Telstra Group Ltd (ASX: TLS)
Another ASX value stock to look at is telco giant Telstra. It has been named as a buy by analysts at Goldman Sachs. They have a buy rating and $4.55 price target on its shares. This suggests potential upside of almost 20% over the next 12 months.
In respect to its valuation, the broker highlights that Telstra's shares are a lot better value than they may look at first glance. It said:
Although at a headline level, Telstra valuation appears relatively full (vs. peers and vs. 10Y yield), we note: (1) Adjusting out NBN recurring payments (a unique asset), Telstra trades at a much more compelling multiple; (2) Although its yield spread is compressed vs. history, when factoring dividend growth this is more attractive. Hence in an uncertain 2024 we rate Telstra Buy.
