5 Value Stocks To Watch In The Industrials Sector

Understanding 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.

The following stocks are considered to be notable value stocks in the industrials sector:

1. Navios Maritime Partners NMM - P/E: 1.22
2. Hollysys Automation Tech HOLI - P/E: 9.95
3. Universal Logistics Hldgs ULH - P/E: 5.9
4. HireRight Holdings HRT - P/E: 8.38
5. CompoSecure CMPO - P/E: 8.47

Most recently, Navios Maritime Partners reported earnings per share at $2.13, whereas in Q4 earnings per share sat at $3.66. The company's most recent dividend yield sits at 0.87%, which has increased by 0.01% from 0.86% last quarter.

Hollysys Automation Tech's earnings per share for Q4 sits at $0.43, whereas in Q3, they were at 0.2. Its most recent dividend yield is at 2.44%, which has increased by 2.26% from 0.18% in the previous quarter.

Universal Logistics Hldgs saw a decrease in earnings per share from 0.95 in Q1 to $0.9 now. Most recently, the company reported a dividend yield of 1.32%, which has decreased by 0.29% from last quarter's yield of 1.61%.

This quarter, HireRight Holdings experienced an increase in earnings per share, which was $0.18 in Q1 and is now $0.34. CompoSecure saw an increase in earnings per share from 0.23 in Q1 to $0.25 now.

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.