5 Value Stocks In The Financial Services 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 financial services sector that may be worth watching:

1. Berkshire Hills Bancorp BHLB - P/E: 9.84
2. Riverview Bancorp RVSB - P/E: 6.63
3. Citizens Financial Group CFG - P/E: 7.53
4. Financial Institutions FISI - P/E: 5.84
5. Summit Finl Gr SMMF - P/E: 7.72

Most recently, Berkshire Hills Bancorp reported earnings per share at $0.43, whereas in Q4 earnings per share sat at $0.42. Its most recent dividend yield is at 1.9%, which has increased by 0.25% from 1.65% in the previous quarter.

Most recently, Riverview Bancorp reported earnings per share at $0.19, whereas in Q3 earnings per share sat at $0.25. Most recently, the company reported a dividend yield of 3.7%, which has increased by 0.79% from last quarter's yield of 2.91%.

Citizens Financial Group saw a decrease in earnings per share from 1.26 in Q4 to $1.07 now. Most recently, the company reported a dividend yield of 3.78%, which has increased by 0.98% from last quarter's yield of 2.8%.

Financial Institutions saw a decrease in earnings per share from 1.21 in Q4 to $0.93 now. Its most recent dividend yield is at 4.27%, which has increased by 0.64% from 3.63% in the previous quarter.

Most recently, Summit Finl Gr reported earnings per share at $0.9, whereas in Q4 earnings per share sat at $0.95. Most recently, the company reported a dividend yield of 2.64%, which has decreased by 0.09% from last quarter's yield of 2.73%.

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.