5 Value Stocks In The Consumer Defensive Sector

Understanding 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. Hailiang Education Gr HLG - P/E: 3.61
2. Ingles Markets IMKTA - P/E: 6.24
3. Sendas Distribuidora ASAI - P/E: 8.35
4. Adecoagro AGRO - P/E: 7.69
5. Graham Hldgs GHC - P/E: 5.8

This quarter, Hailiang Education Gr experienced an increase in earnings per share, which was 0.64 in Q3 and is now 0.8. Ingles Markets's earnings per share for Q1 sits at 3.48, whereas in Q4, they were at 3.78. Its most recent dividend yield is at 0.76%, which has decreased by 0.25% from 1.01% in the previous quarter.

Sendas Distribuidora's earnings per share for Q3 sits at 0.12, whereas in Q2, they were at 0.21. Most recently, Adecoagro reported earnings per share at 0.32, whereas in Q2 earnings per share sat at -0.12. Graham Hldgs saw an increase in earnings per share from 3.88 in Q2 to 7.44 now. The company's most recent dividend yield sits at 1.04%, which has increased by 0.04% from 1.0% 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.