What are Value Stocks?
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.
Below is a list of notable value stocks in the industrials sector:
- Mueller Industries MLI - P/E: 9.17
- United Airlines Holdings UAL - P/E: 5.51
- Euroseas ESEA - P/E: 2.16
- Performance Shipping PSHG - P/E: 0.51
- Intuitive Machines LUNR - P/E: 3.92
Mueller Industries has reported Q4 earnings per share at $1.05, which has increased by 77.97% compared to Q3, which was 0.59. Its most recent dividend yield is at 1.53%, which has increased by 0.04% from 1.49% in the previous quarter.
United Airlines Holdings saw a decrease in earnings per share from 3.65 in Q3 to $2.0 now. Most recently, Euroseas reported earnings per share at $3.61, whereas in Q3 earnings per share sat at $4.07. Its most recent dividend yield is at 8.06%, which has decreased by 1.12% from 9.18% in the previous quarter.
Performance Shipping's earnings per share for Q3 sits at $0.27, whereas in Q2, they were at 0.46. Intuitive Machines's earnings per share for Q3 sits at $1.29, whereas in Q2, they were at 1.52.
The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.
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