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.
Below is a list of notable value stocks in the industrials sector:
- Greenland Technologies GTEC - P/E: 6.8
- Titan Intl TWI - P/E: 4.24
- Grindrod Shipping Hldgs GRIN - P/E: 2.31
- ZIM Integrated Shipping ZIM - P/E: 0.57
- CNH Industrial CNHI - P/E: 9.65
Most recently, Greenland Technologies reported earnings per share at $0.11, whereas in Q4 earnings per share sat at $-0.08. Most recently, Titan Intl reported earnings per share at $0.53, whereas in Q4 earnings per share sat at $0.44. Most recently, the company reported a dividend yield of 1.04%, which has increased by 0.45% from last quarter's yield of 0.59%.
Grindrod Shipping Hldgs saw a decrease in earnings per share from 0.56 in Q4 to $-0.22 now. The company's most recent dividend yield sits at 1.18%, which has increased by 0.44% from 0.74% last quarter.
This quarter, ZIM Integrated Shipping experienced a decrease in earnings per share, which was $3.44 in Q4 and is now $-0.5. Most recently, the company reported a dividend yield of 130.81%, which has increased by 86.06% from last quarter's yield of 44.75%.
Most recently, CNH Industrial reported earnings per share at $0.35, whereas in Q4 earnings per share sat at $0.36. Its most recent dividend yield is at 2.11%, which has increased by 1.09% from 1.02% 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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