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:
- Sunlands Technology STG - P/E: 1.48
- Perdoceo Education PRDO - P/E: 8.24
- Bunge Global BG - P/E: 7.87
- iHuman IH - P/E: 6.57
- Adecoagro AGRO - P/E: 8.09
Sunlands Technology's earnings per share for Q3 sits at $1.31, whereas in Q2, they were at 1.73. Perdoceo Education's earnings per share for Q3 sits at $0.64, whereas in Q2, they were at 0.61. Most recently, Bunge Global reported earnings per share at $2.99, whereas in Q2 earnings per share sat at $3.72. Most recently, the company reported a dividend yield of 2.49%, which has increased by 0.11% from last quarter's yield of 2.38%.
This quarter, iHuman experienced an increase in earnings per share, which was $0.11 in Q2 and is now $0.14. This quarter, Adecoagro experienced an increase in earnings per share, which was $0.4 in Q2 and is now $0.83. Most recently, the company reported a dividend yield of 3.93%, which has increased by 0.21% from last quarter's yield of 3.72%.
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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