What Defines 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:
- Globus Maritime GLBS - P/E: 1.18
- Hertz Global Holdings HTZ - P/E: 6.9
- HireRight Holdings HRT - P/E: 8.0
- Navios Maritime Partners NMM - P/E: 1.13
- Harte-Hanks HHS - P/E: 1.67
Globus Maritime has reported Q1 earnings per share at $-0.09, which has increased by 40.0% compared to Q4, which was -0.15. Hertz Global Holdings has reported Q2 earnings per share at $0.72, which has increased by 84.62% compared to Q1, which was 0.39. Most recently, HireRight Holdings reported earnings per share at $0.34, whereas in Q1 earnings per share sat at $0.18. This quarter, Navios Maritime Partners experienced an increase in earnings per share, which was $2.13 in Q1 and is now $3.32. Most recently, the company reported a dividend yield of 0.87%, which has increased by 0.01% from last quarter's yield of 0.86%.
Harte-Hanks has reported Q2 earnings per share at $0.16, which has increased by 245.45% compared to Q1, which was -0.11. The company's most recent dividend yield sits at 10.59%, which has increased by 0.76% from 9.83% 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.
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