What is 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.
Benzinga Insights has compiled a list of value stocks in the consumer defensive sector that may be worth watching:
- Skillsoft SKIL - P/E: 2.4
- Perdoceo Education PRDO - P/E: 9.39
- Gravitas Education GEHI - P/E: 3.63
- Newell Brands NWL - P/E: 9.75
- Andersons ANDE - P/E: 9.46
Skillsoft has reported Q2 earnings per share at $0.09, which has increased by 160.0% compared to Q1, which was -0.15. Perdoceo Education saw a decrease in earnings per share from 0.42 in Q2 to $0.39 now. Gravitas Education has reported Q4 earnings per share at $1.0, which has increased by 183.33% compared to Q3, which was -1.2. Most recently, Newell Brands reported earnings per share at $0.53, whereas in Q2 earnings per share sat at $0.57. Its most recent dividend yield is at 6.52%, which has increased by 1.89% from 4.63% in the previous quarter.
This quarter, Andersons experienced a decrease in earnings per share, which was $2.39 in Q2 and is now $0.5. The company's most recent dividend yield sits at 1.85%, which has decreased by 0.12% from 1.97% 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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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