2 no-brainer value stocks I think I'll buy for Q4 – Motley Fool UK

Jon Smith reveals two value stocks that he’s thinking of buying to boost his portfolio performance as we go into the end of the year.
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We’re getting closer to October, marking the beginning of Q4. This also coincides with payday, meaning I should have some free cash with which to buy some stocks. At the moment, I think it’s a smart play to buy some solid value stocks that should help to protect my portfolio against choppy stock market movements. Here are two ideas that I think make complete sense for me to buy.
The first company on my radar is AstraZeneca (LSE:AZN). I’ve never owned the stock, but several of my friends do. With the share price rallying 24% over the past year, it’s easy to see why.
The business has a strong track record of performance, with H1 2022 results being another good period for the business. I like the fact that the pharma giant isn’t overly reliant on one area for revenue. The largest division (oncology) generated 35.5% of total revenue during H1. The other divisions also made a meaningful contribution towards the group level figure. This means it’s less sensitive to a sudden change in the pharma landscape.
Going forward, I think the way it forecasts Covid-19 medicine revenue could be a risk. For the full year, the guidance is that total revenue from Covid-19 medicines is anticipated to be broadly flat versus the previous year. I think this is optimistic. It’s true that we don’t know what the future will bring for the virus, but I’d rather the business err on the conservative side to avoid over-promising and under-delivering.
So why do I think it’s a no-brainer stock to buy now? Healthcare is a sector that shouldn’t be really hampered if the UK economy struggles this winter. It has shown over time that it can generate sticky revenue thanks to the broad client base and necessity of products sold.
Another good stock that I think is appealing is Informa (LSE:INF). The FTSE 100 company has a range of operations, including running events and providing content and research.
One of the reasons why I think the stock is a good buy for me now is due to the fact that we’re over the pandemic slump. This means that people are more comfortable going to in-person events and businesses are happier to spend on marketing and attending such exhibitions. I expect this trend to continue into 2023, so I think now is a good time to jump on the bandwagon.
With the share price up 4.6% in the past year and a price-to-earnings ratio of 32, some might say this isn’t a great value stock pick. However, I’m looking at the longer-term view. The business is still recovering from the financial hit of Covid-19. The share price could rally 50% from current levels and still not be at the levels seen before the March 2020 crash. With interim H1 revenues up 59.1% year on year, there’s clear value (in my opinion) in me buying now if this momentum can carry on.
I do think that the business could specialise in one area, as some of the divisions aren’t that linked together, providing some potential inefficiencies. But as a whole, it’s a stock (along with AstraZeneca) I’m likely to buy for Q4.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.
Jon Smith has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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