5 Value Stocks To Watch In The Consumer Defensive Sector

What are 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. Nu Skin Enterprises NUS - P/E: 8.98
2. Ingles Markets IMKTA - P/E: 5.73
3. Perdoceo Education PRDO - P/E: 6.47
4. Industrias Bachoco SAB IBA - P/E: 8.2
5. Bunge BG - P/E: 6.3

Most recently, Nu Skin Enterprises reported earnings per share at 1.15, whereas in Q1 earnings per share sat at 0.91. The company's most recent dividend yield sits at 2.8%, which has decreased by 0.12% from 2.92% last quarter.

Ingles Markets saw an increase in earnings per share from 2.58 in Q2 to 3.79 now. Most recently, the company reported a dividend yield of 1.01%, which has decreased by 0.1% from last quarter's yield of 1.11%.

Perdoceo Education has reported Q2 earnings per share at 0.41, which has decreased by 6.82% compared to Q1, which was 0.44. Perdoceo Education does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Industrias Bachoco SAB reported earnings per share at 1.48, whereas in Q1 earnings per share sat at 2.06. Most recently, the company reported a dividend yield of 1.92%, which has decreased by 0.02% from last quarter's yield of 1.94%.

Most recently, Bunge reported earnings per share at 2.61, whereas in Q1 earnings per share sat at 3.13. Most recently, the company reported a dividend yield of 2.79%, which has increased by 0.34% from last quarter's yield of 2.45%.

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.