Overview Of Value Stocks In The Consumer Defensive Sector

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 consumer defensive sector:

1. Chegg CHGG - P/E: 7.91
2. Seneca Foods SENEA - P/E: 8.88
3. Village Super Market VLGEA - P/E: 7.46
4. Fresh Del Monte Produce FDP - P/E: 9.61
5. United Natural Foods UNFI - P/E: 9.64

Most recently, Chegg reported earnings per share at $0.27, whereas in Q4 earnings per share sat at $0.4. Seneca Foods saw a decrease in earnings per share from 2.74 in Q3 to $-1.2 now. This quarter, Village Super Market experienced a decrease in earnings per share, which was $0.85 in Q2 and is now $0.69. Its most recent dividend yield is at 4.4%, which has decreased by 0.01% from 4.41% in the previous quarter.

Fresh Del Monte Produce's earnings per share for Q2 sits at $0.96, whereas in Q1, they were at 0.55. Most recently, the company reported a dividend yield of 3.01%, which has increased by 0.22% from last quarter's yield of 2.79%.

This quarter, United Natural Foods experienced a decrease in earnings per share, which was $0.78 in Q2 and is now $0.54.

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.