What are 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.
Below is a list of notable value stocks in the industrials sector:
- Smith & Wesson Brands SWBI - P/E: 3.3
- Costamare CMRE - P/E: 2.73
- Insteel Indus IIIN - P/E: 4.3
- Schneider National SNDR - P/E: 8.45
- Mega Matrix MTMT - P/E: 0.46
Smith & Wesson Brands saw an increase in earnings per share from 0.69 in Q3 to $0.82 now. Its most recent dividend yield is at 3.05%, which has increased by 1.28% from 1.77% in the previous quarter.
Costamare has reported Q2 earnings per share at $0.95, which has increased by 13.1% compared to Q1, which was 0.84. The company's most recent dividend yield sits at 3.8%, which has increased by 1.1% from 2.7% last quarter.
Insteel Indus saw a decrease in earnings per share from 1.99 in Q2 to $1.96 now. Most recently, the company reported a dividend yield of 0.4%, which has increased by 0.1% from last quarter's yield of 0.3%.
This quarter, Schneider National experienced an increase in earnings per share, which was $0.57 in Q1 and is now $0.72. Its most recent dividend yield is at 1.33%, which has decreased by 0.08% from 1.41% in the previous quarter.
Mega Matrix's earnings per share for Q2 sits at $-0.06, whereas in Q1, they were at -0.02.
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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