What Defines a Value Stock?
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:
- Amcon Distributing DIT - P/E: 6.11
- DAVIDsTEA DTEA - P/E: 0.94
- Lincoln Educational Servs LINC - P/E: 7.02
- Adecoagro AGRO - P/E: 6.75
- Seneca Foods SENEA - P/E: 9.01
Amcon Distributing's earnings per share for Q2 sits at $5.19, whereas in Q1, they were at 5.18. The company's most recent dividend yield sits at 0.43%, which has ('', 'not changed') by 0.0% from 0.43% last quarter.
DAVIDsTEA has reported Q4 earnings per share at $0.06, which has increased by 200.0% compared to Q3, which was -0.06. This quarter, Lincoln Educational Servs experienced a decrease in earnings per share, which was $0.73 in Q4 and is now $0.0. Adecoagro saw a decrease in earnings per share from 0.52 in Q4 to $0.13 now. Seneca Foods's earnings per share for Q3 sits at $2.14, whereas in Q2, they were at 1.31.
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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