The Meaning Behind Value Stocks

A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.

Benzinga Insights has compiled a list of value stocks in the financial services sector that may be worth watching:

1. ESSA Bancorp ESSA - P/E: 9.45
2. Synchrony Finl SYF - P/E: 7.48
3. Meridian MRBK - P/E: 6.35
4. Principal Financial Group PFG - P/E: 9.61
5. Citigroup C - P/E: 8.77

ESSA Bancorp has reported Q3 earnings per share at 0.37, which has increased by 12.12% compared to Q2, which was 0.33. The company’s most recent dividend yield sits at 3.42%, which has decreased by 0.04% from 3.46% last quarter.

Synchrony Finl’s earnings per share for Q2 sits at 0.06, whereas in Q1, they were at 0.45. Most recently, the company reported a dividend yield of 3.89%, which has decreased by 1.58% from last quarter’s yield of 5.47%.

This quarter, Meridian experienced an increase in earnings per share, which was 0.39 in Q1 and is now 0.94. Meridian does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Principal Financial Group reported earnings per share at 1.46, whereas in Q1 earnings per share sat at 1.15. Most recently, the company reported a dividend yield of 5.0%, which has decreased by 2.47% from last quarter’s yield of 7.47%.

This quarter, Citigroup experienced a decrease in earnings per share, which was 1.05 in Q1 and is now 0.5. The company’s most recent dividend yield sits at 3.95%, which has decreased by 0.69% from 4.64% last quarter.

These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.