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.
Benzinga Insights has compiled a list of value stocks in the consumer defensive sector that may be worth watching:
- Sprouts Farmers Market SFM - P/E: 9.92
- Amcon Distributing DIT - P/E: 7.22
- New Oriental Education EDU - P/E: 7.87
- Big Lots BIG - P/E: 6.58
- Bunge BG - P/E: 6.04
Sprouts Farmers Market has reported Q2 earnings per share at 0.52, which has decreased by 25.71% compared to Q1, which was 0.7. Sprouts Farmers Market does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Amcon Distributing's earnings per share for Q3 sits at 6.48, whereas in Q2, they were at 4.33. Most recently, the company reported a dividend yield of 0.43%, which has decreased by 0.08% from last quarter's yield of 0.51%.
This quarter, New Oriental Education experienced a decrease in earnings per share, which was 0.43 in Q2 and is now 0.1. Its most recent dividend yield is at 0.0%, which has ('', 'not changed') by 0.0% from 0.0% in the previous quarter.
Big Lots's earnings per share for Q2 sits at 1.09, whereas in Q1, they were at 2.62. Most recently, the company reported a dividend yield of 2.09%, which has increased by 0.19% from last quarter's yield of 1.9%.
Bunge's earnings per share for Q2 sits at 2.61, whereas in Q1, they were at 3.13. Its most recent dividend yield is at 2.79%, which has increased by 0.34% from 2.45% in the previous quarter.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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