What are 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.
Below is a list of notable value stocks in the consumer defensive sector:
- Bunge Global BG - P/E: 7.84
- Bridgford Foods BRID - P/E: 2.18
- iHuman IH - P/E: 6.21
- Perdoceo Education PRDO - P/E: 8.22
- Altria Group MO - P/E: 8.23
Bunge Global saw a decrease in earnings per share from 3.72 in Q2 to $2.99 now. The company's most recent dividend yield sits at 2.49%, which has increased by 0.11% from 2.38% last quarter.
Most recently, Bridgford Foods reported earnings per share at $0.08, whereas in Q2 earnings per share sat at $0.02. iHuman's earnings per share for Q2 sits at $0.11, whereas in Q1, they were at 0.15. This quarter, Perdoceo Education experienced an increase in earnings per share, which was $0.61 in Q2 and is now $0.64. Altria Group's earnings per share for Q3 sits at $1.28, whereas in Q2, they were at 1.31. Most recently, the company reported a dividend yield of 9.21%, which has increased by 0.12% from last quarter's yield of 9.09%.
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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