Understanding 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.
The following stocks are considered to be notable value stocks in the industrials sector:
- Builders FirstSource BLDR - P/E: 4.41
- BlueLinx Hldgs BXC - P/E: 2.06
- ArcBest ARCB - P/E: 6.57
- Kanzhun BZ - P/E: 5.83
- Heidrick & Struggles Intl HSII - P/E: 7.05
Builders FirstSource has reported Q2 earnings per share at $6.26, which has increased by 60.51% compared to Q1, which was 3.9. BlueLinx Hldgs has reported Q2 earnings per share at $7.48, which has decreased by 43.29% compared to Q1, which was 13.19. ArcBest has reported Q2 earnings per share at $4.3, which has increased by 39.61% compared to Q1, which was 3.08. Its most recent dividend yield is at 0.6%, which has decreased by 0.08% from 0.68% in the previous quarter.
Kanzhun has reported Q2 earnings per share at $0.08, which has increased by 100.0% compared to Q1, which was 0.04. Heidrick & Struggles Intl has reported Q2 earnings per share at $1.19, which has increased by 32.22% compared to Q1, which was 0.9. The company's most recent dividend yield sits at 2.01%, which has increased by 0.5% from 1.51% 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.
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