A Look Into Financial Services Sector Value Stocks

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.

The following stocks are considered to be notable value stocks in the financial services sector:

1. BanColombia CIB - P/E: 4.76
2. Banco Latinoamericano BLX - P/E: 7.18
3. Midwest Holding MDWT - P/E: 4.91
4. First Internet INBK - P/E: 5.6
5. Bank of N.T Butterfield NTB - P/E: 7.64

This quarter, BanColombia experienced a decrease in earnings per share, which was $1.78 in Q2 and is now $1.48. Most recently, the company reported a dividend yield of 10.12%, which has increased by 0.96% from last quarter's yield of 9.16%.

Banco Latinoamericano saw an increase in earnings per share from 0.63 in Q2 to $0.74 now. Its most recent dividend yield is at 6.37%, which has decreased by 0.78% from 7.15% in the previous quarter.

Most recently, Midwest Holding reported earnings per share at $1.96, whereas in Q2 earnings per share sat at $2.47. Most recently, First Internet reported earnings per share at $0.9, whereas in Q2 earnings per share sat at $1.06. The company's most recent dividend yield sits at 1.06%, which has increased by 0.41% from 0.65% last quarter.

This quarter, Bank of N.T Butterfield experienced an increase in earnings per share, which was $1.01 in Q2 and is now $1.16. Its most recent dividend yield is at 5.12%, which has decreased by 0.1% from 5.22% in the previous 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.