5 Value Stocks To Watch In The Consumer Defensive Sector

The Meaning Behind Value Stocks

A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.

The following stocks are considered to be notable value stocks in the consumer defensive sector:

1. Mannatech MTEX - P/E: 5.57
2. Kroger KR - P/E: 8.53
3. Seneca Foods SENEB - P/E: 4.59
4. Alico ALCO - P/E: 9.86
5. SpartanNash SPTN - P/E: 9.24

Mannatech's earnings per share for Q3 sits at 0.76, whereas in Q2, they were at 0.47. Mannatech does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Kroger saw a decrease in earnings per share from 0.73 in Q2 to 0.71 now. The company's most recent dividend yield sits at 2.25%, which has increased by 0.06% from 2.19% last quarter.

Seneca Foods has reported Q2 earnings per share at 1.97, which has decreased by 12.05% compared to Q1, which was 2.24. Seneca Foods does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Alico experienced a decrease in earnings per share, which was 0.25 in Q3 and is now -0.42. Most recently, the company reported a dividend yield of 2.31%, which has increased by 1.12% from last quarter's yield of 1.19%.

SpartanNash has reported Q3 earnings per share at 0.7, which has decreased by 4.11% compared to Q2, which was 0.73. Most recently, the company reported a dividend yield of 4.18%, which has increased by 0.33% from last quarter's yield of 3.85%.

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.