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 industrials sector:
- Louisiana-Pacific LPX - P/E: 5.04
- Wilhelmina International WHLM - P/E: 5.79
- Triton International TRTN - P/E: 9.68
- Safe Bulkers SB - P/E: 3.65
- Costamare CMRE - P/E: 5.54
Most recently, Louisiana-Pacific reported earnings per share at 3.87, whereas in Q2 earnings per share sat at 4.74. Most recently, the company reported a dividend yield of 1.19%, which has decreased by 0.09% from last quarter's yield of 1.28%.
Wilhelmina International looks to be undervalued. It possesses an EPS of 0.22, which has not changed since last quarter (Q2). Wilhelmina International does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Triton International saw an increase in earnings per share from 2.14 in Q2 to 2.43 now. Most recently, the company reported a dividend yield of 4.41%, which has decreased by 0.11% from last quarter's yield of 4.52%.
Safe Bulkers's earnings per share for Q3 sits at 0.4, whereas in Q2, they were at 0.31. Safe Bulkers does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Costamare reported earnings per share at 0.66, whereas in Q2 earnings per share sat at 0.47. The company's most recent dividend yield sits at 2.97%, which has decreased by 0.93% from 3.9% 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.
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