What are 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.
The following stocks are considered to be notable value stocks in the consumer defensive sector:
- Big Lots BIG - P/E: 6.23
- Sendas Distribuidora ASAI - P/E: 8.47
- Bunge BG - P/E: 6.09
- Ingles Markets IMKTA - P/E: 6.01
- Hailiang Education Gr HLG - P/E: 3.52
Big Lots's earnings per share for Q3 sits at -0.14, whereas in Q2, they were at 1.09. The company's most recent dividend yield sits at 2.77%, which has increased by 0.68% from 2.09% last quarter.
Sendas Distribuidora has reported Q3 earnings per share at 0.12, which has decreased by 42.86% compared to Q2, which was 0.21. Bunge has reported Q3 earnings per share at 3.72, which has increased by 42.53% compared to Q2, which was 2.61. Most recently, the company reported a dividend yield of 2.3%, which has decreased by 0.49% from last quarter's yield of 2.79%.
Most recently, Ingles Markets reported earnings per share at 3.78, whereas in Q3 earnings per share sat at 3.79. Its most recent dividend yield is at 0.76%, which has decreased by 0.25% from 1.01% in the previous quarter.
Hailiang Education Gr's earnings per share for Q4 sits at 0.8, whereas in Q3, they were at 0.64.
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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