A Look Into Industrials Sector Value Stocks

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.

Below is a list of notable value stocks in the industrials sector:

1. USD Partners USDP - P/E: 6.81
2. CAI International CAI - P/E: 8.06
3. Nordic American Tankers NAT - P/E: 9.71
4. Acacia Research ACTG - P/E: 3.77
5. Document Security Systems DSS - P/E: 4.66

USD Partners saw an increase in earnings per share from 0.24 in Q4 to 0.26 now. Most recently, the company reported a dividend yield of 8.09%, which has decreased by 0.3% from last quarter's yield of 8.39%.

This quarter, CAI International experienced an increase in earnings per share, which was 1.76 in Q4 and is now 1.85. Most recently, the company reported a dividend yield of 3.09%, which has decreased by 0.79% from last quarter's yield of 3.88%.

Nordic American Tankers has reported Q4 earnings per share at -0.19, which has decreased by 171.43% compared to Q3, which was -0.07. The company's most recent dividend yield sits at 2.5%, which has decreased by 2.53% from 5.03% last quarter.

Acacia Research has reported Q4 earnings per share at -0.47, which has decreased by 291.67% compared to Q3, which was -0.12. Its most recent dividend yield is at 5.79%, which has increased by 3.62% from 2.17% in the previous quarter.

Most recently, Document Security Systems reported earnings per share at -0.46, whereas in Q3 earnings per share sat at -0.31. Document Security Systems does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.