A Look Into Industrials Sector Value Stocks

Understanding 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. Tutor Perini TPC - P/E: 7.66
2. Kelly Services KELYA - P/E: 9.48
3. CAI International CAI - P/E: 8.29
4. BlueLinx Hldgs BXC - P/E: 3.5
5. GrafTech International EAF - P/E: 8.7

Most recently, Tutor Perini reported earnings per share at 0.31, whereas in Q4 earnings per share sat at 0.69. Tutor Perini does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Kelly Services reported earnings per share at 0.12, whereas in Q4 earnings per share sat at 0.41. Its most recent dividend yield is at 1.68%, which has increased by 0.44% from 1.24% in the previous quarter.

This quarter, CAI International experienced an increase in earnings per share, which was 1.76 in Q4 and is now 1.85. The company's most recent dividend yield sits at 2.63%, which has decreased by 0.46% from 3.09% last quarter.

BlueLinx Hldgs's earnings per share for Q1 sits at 6.44, whereas in Q4, they were at 2.04. BlueLinx Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

GrafTech International's earnings per share for Q1 sits at 0.37, whereas in Q4, they were at 0.47. Most recently, the company reported a dividend yield of 0.31%, which has decreased by 0.1% from last quarter's yield of 0.41%.

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.