Understanding Value Stocks
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:
- Perdoceo Education PRDO - P/E: 9.8
- Amcon Distributing DIT - P/E: 6.58
- Cal-Maine Foods CALM - P/E: 3.62
- Bunge BG - P/E: 8.88
- United Natural Foods UNFI - P/E: 8.38
This quarter, Perdoceo Education experienced a decrease in earnings per share, which was $0.39 in Q3 and is now $0.31. This quarter, Amcon Distributing experienced a decrease in earnings per share, which was $7.97 in Q4 and is now $4.46. Cal-Maine Foods has reported Q3 earnings per share at $6.62, which has increased by 62.65% compared to Q2, which was 4.07. Its most recent dividend yield is at 15.92%, which has increased by 7.45% from 8.47% in the previous quarter.
Bunge has reported Q4 earnings per share at $3.24, which has decreased by 6.09% compared to Q3, which was 3.45. The company's most recent dividend yield sits at 2.6%, which has increased by 0.14% from 2.46% last quarter.
United Natural Foods has reported Q2 earnings per share at $0.78, which has decreased by 30.97% compared to Q1, which was 1.13.
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.
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