Understanding 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.
The following stocks are considered to be notable value stocks in the consumer defensive sector:
- Seneca Foods SENEA - P/E: 4.74
- Seneca Foods SENEB - P/E: 4.73
- Perdoceo Education PRDO - P/E: 7.57
- Adtalem Glb Education ATGE - P/E: 7.46
- Mannatech MTEX - P/E: 5.66
This quarter, Seneca Foods experienced an increase in earnings per share, which was 1.97 in Q2 and is now 7.9. Seneca Foods does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Seneca Foods reported earnings per share at 7.9, whereas in Q2 earnings per share sat at 1.97. Seneca Foods does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Perdoceo Education's earnings per share for Q3 sits at 0.35, whereas in Q2, they were at 0.41. Perdoceo Education does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Adtalem Glb Education reported earnings per share at 0.77, whereas in Q1 earnings per share sat at 0.78. Adtalem Glb Education does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Mannatech has reported Q3 earnings per share at 0.76, which has increased by 61.7% compared to Q2, which was 0.47. Mannatech 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.
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