Overview Of Value Stocks In The Financial Services Sector

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.

Below is a list of notable value stocks in the financial services sector:

1. Diamond Hill Investment DHIL - P/E: 9.45
2. First Financial THFF - P/E: 9.89
3. Blackstone Secured BXSL - P/E: 9.83
4. Farmers National Banc FMNB - P/E: 8.81
5. ConnectOne Bancorp CNOB - P/E: 8.52

Diamond Hill Investment has reported Q2 earnings per share at $3.77, which has increased by 31.36% compared to Q1, which was 2.87. The company's most recent dividend yield sits at 3.06%, which has decreased by 0.27% from 3.33% last quarter.

First Financial has reported Q2 earnings per share at $1.27, which has decreased by 23.95% compared to Q1, which was 1.67. This quarter, Blackstone Secured experienced an increase in earnings per share, which was $0.61 in Q1 and is now $0.62. Farmers National Banc has reported Q2 earnings per share at $0.49, which has decreased by 3.92% compared to Q1, which was 0.51. Most recently, the company reported a dividend yield of 4.44%, which has increased by 0.1% from last quarter's yield of 4.34%.

ConnectOne Bancorp's earnings per share for Q2 sits at $0.78, whereas in Q1, they were at 0.75. Most recently, the company reported a dividend yield of 2.47%, which has increased by 0.29% from last quarter's yield of 2.18%.

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.