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 labeled as a value stock.

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

1. StealthGas GASS - P/E: 7.78
2. Castor Maritime CTRM - P/E: 2.44
3. International Seaways INSW - P/E: 3.92
4. Ampco-Pittsburgh AP - P/E: 6.4
5. Preformed Line Products PLPC - P/E: 9.41

Most recently, StealthGas reported earnings per share at 0.08, whereas in Q2 earnings per share sat at 0.25. StealthGas does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Castor Maritime experienced an increase in earnings per share, which was -0.01 in Q2 and is now -0.01. Castor Maritime does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, International Seaways reported earnings per share at 0.98, whereas in Q2 earnings per share sat at 2.39. The company’s most recent dividend yield sits at 1.75%, which has increased by 0.35% from 1.4% last quarter.

Ampco-Pittsburgh has reported Q3 earnings per share at 0.07, which has increased by 40.0% compared to Q2, which was 0.05. Its most recent dividend yield is at 2.51%, which has increased by 0.45% from 2.06% in the previous quarter.

This quarter, Preformed Line Products experienced an increase in earnings per share, which was 2.11 in Q2 and is now 2.59. Its most recent dividend yield is at 1.58%, which has ('', 'not changed') by 0.0% from 1.58% in the previous quarter.

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.