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:
- Brasilagro - Cia Bras LND - P/E: 5.78
- Bridgford Foods BRID - P/E: 2.45
- RLX Technology RLX - P/E: 9.57
- Adecoagro AGRO - P/E: 5.57
- Tyson Foods TSN - P/E: 9.02
Brasilagro - Cia Bras saw a decrease in earnings per share from 0.08 in Q1 to $0.0 now. Bridgford Foods has reported Q3 earnings per share at $0.04, which has increased by 144.44% compared to Q2, which was -0.09. RLX Technology has reported Q3 earnings per share at $0.04, which has decreased by 52.05% compared to Q2, which was 0.07. Adecoagro has reported Q3 earnings per share at $0.43, which has increased by 7.5% compared to Q2, which was 0.4. This quarter, Tyson Foods experienced a decrease in earnings per share, which was $1.63 in Q4 and is now $0.85. Its most recent dividend yield is at 3.2%, which has increased by 0.31% from 2.89% 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.
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