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:
- Fresh Del Monte Produce FDP - P/E: 8.68
- Herbalife HLF - P/E: 6.23
- Bridgford Foods BRID - P/E: 2.24
- Cal-Maine Foods CALM - P/E: 3.15
- Village Super Market VLGEA - P/E: 6.85
This quarter, Fresh Del Monte Produce experienced an increase in earnings per share, which was $0.55 in Q1 and is now $0.96. 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%.
Herbalife has reported Q2 earnings per share at $0.74, which has increased by 37.04% compared to Q1, which was 0.54. Its most recent dividend yield is at 1.71%, which has decreased by 1.82% from 3.53% in the previous quarter.
This quarter, Bridgford Foods experienced a decrease in earnings per share, which was $0.1 in Q1 and is now $0.02. This quarter, Cal-Maine Foods experienced a decrease in earnings per share, which was $6.62 in Q3 and is now $2.27. Its most recent dividend yield is at 6.73%, which has decreased by 9.19% from 15.92% in the previous quarter.
This quarter, Village Super Market experienced a decrease in earnings per share, which was $0.85 in Q2 and is now $0.69. Most recently, the company reported a dividend yield of 4.4%, which has decreased by 0.01% from last quarter's yield of 4.41%.
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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