Understanding 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 labeled as a value stock.

The following stocks are considered to be notable value stocks in the industrials sector:

1. Concrete Pumping Holdings BBCP - P/E: 5.0
2. Sterling Construction Co STRL - P/E: 7.57
3. MasTec MTZ - P/E: 9.86
4. Seanergy Maritime Hldgs SHIP - P/E: 0.01
5. Great Lakes Dredge & Dock GLDD - P/E: 9.42

Concrete Pumping Holdings saw an increase in earnings per share from -0.08 in Q2 to 0.04 now. Concrete Pumping Holdings does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Sterling Construction Co has reported Q2 earnings per share at 0.65, which has increased by 441.67% compared to Q1, which was 0.12. Sterling Construction Co does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

MasTec saw an increase in earnings per share from 0.6 in Q1 to 0.95 now. MasTec does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Seanergy Maritime Hldgs has reported Q2 earnings per share at -0.65, which has decreased by 109.68% compared to Q1, which was -0.31. Seanergy Maritime Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Great Lakes Dredge & Dock has reported Q2 earnings per share at 0.14, which has decreased by 73.08% compared to Q1, which was 0.52. Great Lakes Dredge & Dock does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.