Overview Of Value Stocks In The Consumer Defensive 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.

Below is a list of notable value stocks in the consumer defensive sector:

1. Andersons ANDE - P/E: 8.9
2. Bunge BG - P/E: 9.97
3. Herbalife Nutrition HLF - P/E: 6.51
4. Sunlands Technology STG - P/E: 0.71
5. Adecoagro AGRO - P/E: 5.4

This quarter, Andersons experienced an increase in earnings per share, which was $0.18 in Q1 and is now $2.39. Most recently, the company reported a dividend yield of 1.85%, which has decreased by 0.12% from last quarter's yield of 1.97%.

Bunge has reported Q3 earnings per share at $3.45, which has increased by 16.16% compared to Q2, which was 2.97. The company's most recent dividend yield sits at 2.55%, which has increased by 0.27% from 2.28% last quarter.

Herbalife Nutrition's earnings per share for Q2 sits at $0.96, whereas in Q1, they were at 0.99. Most recently, the company reported a dividend yield of 1.71%, which has decreased by 1.82% from last quarter's yield of 3.53%.

Sunlands Technology saw a decrease in earnings per share from 2.14 in Q1 to $1.26 now. Adecoagro's earnings per share for Q2 sits at $0.4, whereas in Q1, they were at 0.13.

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.