The Meaning Behind 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 industrials sector:
- USD Partners USDP - P/E: 8.14
- ZIM Integrated Shipping ZIM - P/E: 1.59
- Atkore ATKR - P/E: 6.36
- Eastern Co EML - P/E: 9.03
- Alpha Pro Tech APT - P/E: 8.56
Most recently, USD Partners reported earnings per share at $0.12, whereas in Q3 earnings per share sat at $0.13. Most recently, the company reported a dividend yield of 8.46%, which has increased by 1.45% from last quarter's yield of 7.01%.
ZIM Integrated Shipping has reported Q4 earnings per share at $14.17, which has increased by 16.53% compared to Q3, which was 12.16. The company's most recent dividend yield sits at 96.19%, which has increased by 76.23% from 19.96% last quarter.
Most recently, Atkore reported earnings per share at $4.58, whereas in Q4 earnings per share sat at $4.39. This quarter, Eastern Co experienced an increase in earnings per share, which was $0.64 in Q3 and is now $0.65. Its most recent dividend yield is at 1.73%, which has decreased by 0.09% from 1.82% in the previous quarter.
Alpha Pro Tech has reported Q4 earnings per share at $0.05, which has decreased by 16.67% compared to Q3, which was 0.06.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.