5 Value Stocks To Watch In The Financial Services Sector

The Meaning Behind 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 financial services sector:

1. Parke Bancorp PKBK - P/E: 6.67
2. Gladstone Capital GLAD - P/E: 7.52
3. Lazard LAZ - P/E: 8.1
4. OneMain Holdings OMF - P/E: 4.65
5. UBS Gr UBS - P/E: 7.19

Parke Bancorp's earnings per share for Q2 sits at $0.88, whereas in Q1, they were at 0.83. Most recently, the company reported a dividend yield of 2.84%, which has increased by 0.18% from last quarter's yield of 2.66%.

Gladstone Capital's earnings per share for Q3 sits at $0.2, whereas in Q2, they were at 0.25. Most recently, the company reported a dividend yield of 7.62%, which has ('', 'not changed') by 0.0% from last quarter's yield of 7.62%.

Lazard saw a decrease in earnings per share from 1.05 in Q1 to $0.92 now. Its most recent dividend yield is at 5.88%, which has increased by 0.26% from 5.62% in the previous quarter.

OneMain Holdings has reported Q2 earnings per share at $1.87, which has decreased by 20.43% compared to Q1, which was 2.35. Most recently, the company reported a dividend yield of 9.83%, which has increased by 1.33% from last quarter's yield of 8.5%.

UBS Gr has been featured as a value stock. UBS Gr's Q2 EPS sits at $0.61, which has not changed since last quarter (Q1). The company's most recent dividend yield sits at 0.87%, which has decreased by 0.27% from 1.14% 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.