Overview Of 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.

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

1. Big Lots BIG - P/E: 6.59
2. Graham Hldgs GHC - P/E: 8.23
3. Mannatech MTEX - P/E: 8.59
4. Seneca Foods SENEA - P/E: 7.55
5. DAVIDsTEA DTEA - P/E: 2.17

Most recently, Big Lots reported earnings per share at $1.75, whereas in Q3 earnings per share sat at $-0.14. Its most recent dividend yield is at 3.22%, which has increased by 0.45% from 2.77% in the previous quarter.

Graham Hldgs saw an increase in earnings per share from 7.44 in Q3 to $8.55 now. Its most recent dividend yield is at 1.07%, which has increased by 0.03% from 1.04% in the previous quarter.

Mannatech's earnings per share for Q3 sits at $1.44, whereas in Q2, they were at 0.99. Its most recent dividend yield is at 2.32%, which has increased by 0.22% from 2.1% in the previous quarter.

Seneca Foods has reported Q3 earnings per share at $2.14, which has increased by 63.36% compared to Q2, which was 1.31. DAVIDsTEA looks to be undervalued. It possesses an EPS of $-0.06, which has not changed since last quarter (Q2).

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.