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 industrials sector:
- Performance Shipping PSHG - P/E: 0.29
- BlueLinx Hldgs BXC - P/E: 2.02
- Greenland Technologies GTEC - P/E: 5.3
- Hollysys Automation Tech HOLI - P/E: 9.54
- Lightning eMotors ZEV - P/E: 1.92
Performance Shipping's earnings per share for Q4 sits at $1.18, whereas in Q3, they were at 1.5. BlueLinx Hldgs saw a decrease in earnings per share from 6.38 in Q3 to $3.97 now. Greenland Technologies saw a decrease in earnings per share from 0.1 in Q3 to $-0.08 now. Hollysys Automation Tech's earnings per share for Q2 sits at $0.8, whereas in Q1, they were at 0.37. The company's most recent dividend yield sits at 2.44%, which has increased by 2.26% from 0.18% last quarter.
This quarter, Lightning eMotors experienced a decrease in earnings per share, which was $-0.28 in Q3 and is now $-0.31.
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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