Understanding 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 consumer cyclical sector:
- Century Communities CCS - P/E: 9.75
- Tupperware Brands TUP - P/E: 8.14
- Honda Motor Co HMC - P/E: 8.96
- Cannae Holdings CNNE - P/E: 3.56
- Ever-Glory Intl Gr EVK - P/E: 7.03
This quarter, Century Communities experienced an increase in earnings per share, which was 2.75 in Q4 and is now 3.0. Century Communities does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Tupperware Brands reported earnings per share at 0.82, whereas in Q4 earnings per share sat at 0.14. Most recently, the company reported a dividend yield of 7.0%, which has increased by 2.0% from last quarter's yield of 5.0%.
Honda Motor Co saw a decrease in earnings per share from 1.58 in Q3 to 1.17 now. The company's most recent dividend yield sits at 6.63%, which has increased by 3.37% from 3.26% last quarter.
Cannae Holdings's earnings per share for Q1 sits at -2.55, whereas in Q4, they were at 5.8. Cannae Holdings does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Ever-Glory Intl Gr has reported Q1 earnings per share at -0.08, which has decreased by 117.02% compared to Q4, which was 0.47. Ever-Glory Intl Gr 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.
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