In a recent article, we highlighted a selection of 11 Ridiculously Cheap Stocks that could present lucrative investment opportunities. In this follow-up piece, we will delve into how Lincoln National Corporation (NYSE:LNC) compares with these other attractively priced stocks.

The investment landscape, much like the commodity market, is driven by the principle of seeking out bargains. Investors often engage in a meticulous process of comparing relative prices, identifying discounted products, and ensuring they secure the best value for their money. This principle holds true for the financial markets as wellprice plays a crucial role.

In the current climate of inflated stock prices, the ability to identify hidden gems is what sets apart savvy investors from those who act impulsively. A discerning investor understands that value doesn't hinge solely on what one purchases; rather, it revolves around what one pays for that investment. It is this insight that empowers investors to pinpoint stocks that may be overlooked but possess substantial intrinsic value.

To grasp the concept of a cheap stock, it is essential to understand two prevalent interpretations. The first interpretation views a cheap stock as one with a low share price, while the second, more commonly accepted definition identifies an undervalued stock as a cheap stock. Our analysis aligns with this latter interpretation, viewing cheap stocks as those trading below their intrinsic valueassessed through various metrics such as earnings, revenue, or asset valuation. Consequently, investors consider these stocks 'cheap' in relation to their true potential, rendering them compelling investment choices.

One effective method for identifying undervalued stocks is by examining the forward price-to-earnings (P/E) ratio. This ratio allows investors to ascertain how much they are paying for each dollar of a company's earnings. A low P/E ratio can indicate that a stock is undervalued when juxtaposed with its competitors, historical averages, and overall market trends.

A comprehensive report from Hoover Capital Management (HCM) sheds light on the historical performance disparities between value stocks and growth stocks, utilizing a metric known as the French High Minus Low (HML) factor. Analyzing data spanning 97 years, from July 1926 to December 2023, the findings robustly advocate for value investing strategies. The cumulative returns generated by value stocks have outstripped their growth counterparts by a staggering 3,000%. This data suggests that value investing yields returns 30 times greater than growth investing.

Furthermore, research by economist Victoria Galsband bolsters this viewpoint, revealing that cheap stocks have outperformed growth stocks from 1975 to 2010 across all G7 nations, including Canada, the United States, Japan, and various leading European economies.

Moreover, additional research that examined the effects of companies being added to or removed from the S&P 500 index has provided further insight into stock valuations. The findings indicate that removals are typically associated with stock undervaluation, while additions correlate with increased valuations. A study by Research Affiliates revealed that stocks removed from the S&P index between 1990 and 2022 outperformed those added by more than 5% annually. These compelling data points reinforce our perspective that undervalued stocks, which can be characterized as cheap stocks, are more likely to yield superior returns in the long term.