The Meaning Behind 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 industrials sector that may be worth watching:
- Veritiv VRTV - P/E: 7.58
- Hertz Global Holdings HTZ - P/E: 6.95
- Air Lease AL - P/E: 9.49
- Intuitive Machines LUNR - P/E: 5.62
- Triton International TRTN - P/E: 8.07
Veritiv saw an increase in earnings per share from 5.0 in Q1 to $5.15 now. The company's most recent dividend yield sits at 2.26%, which has increased by 0.43% from 1.83% last quarter.
Most recently, Hertz Global Holdings reported earnings per share at $0.72, whereas in Q1 earnings per share sat at $0.39. Air Lease saw an increase in earnings per share from 1.5 in Q1 to $1.58 now. Most recently, the company reported a dividend yield of 1.89%, which has decreased by 0.13% from last quarter's yield of 2.02%.
Intuitive Machines saw an increase in earnings per share from -0.64 in Q1 to $1.52 now. Triton International saw a decrease in earnings per share from 2.42 in Q1 to $2.38 now. The company's most recent dividend yield sits at 3.32%, which has decreased by 0.07% from 3.39% last 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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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