Overview Of Value Stocks In The Industrials 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.

Benzinga Insights has compiled a list of value stocks in the industrials sector that may be worth watching:

1. Wilhelmina International WHLM - P/E: 7.79
2. BlueLinx Hldgs BXC - P/E: 1.88
3. Encore Wire WIRE - P/E: 8.5
4. Kelly Services KELYA - P/E: 8.34
5. CAI International CAI - P/E: 8.5

Wilhelmina International has reported Q2 earnings per share at 0.22, which has decreased by 48.84% compared to Q1, which was 0.43. Wilhelmina International does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, BlueLinx Hldgs reported earnings per share at 11.61, whereas in Q1 earnings per share sat at 6.44. BlueLinx Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Encore Wire experienced an increase in earnings per share, which was 1.99 in Q1 and is now 8.82. Most recently, the company reported a dividend yield of 0.09%, which has decreased by 0.01% from last quarter's yield of 0.1%.

Most recently, Kelly Services reported earnings per share at 0.49, whereas in Q1 earnings per share sat at 0.12. The company's most recent dividend yield sits at 0.85%, which has decreased by 0.83% from 1.68% last quarter.

This quarter, CAI International experienced an increase in earnings per share, which was 1.85 in Q1 and is now 2.04. The company's most recent dividend yield sits at 2.15%, which has decreased by 0.48% from 2.63% last 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.