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:
- Adtalem Glb Education ATGE - P/E: 7.55
- Lincoln Educational Servs LINC - P/E: 4.3
- Seneca Foods SENEA - P/E: 3.53
- Big Lots BIG - P/E: 4.18
- SpartanNash SPTN - P/E: 9.31
Adtalem Glb Education has reported Q2 earnings per share at 0.77, which has decreased by 1.28% compared to Q1, which was 0.78. Adtalem Glb Education does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Lincoln Educational Servs experienced an increase in earnings per share, which was 0.08 in Q3 and is now 0.31. Lincoln Educational Servs 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.
Big Lots saw an increase in earnings per share from 0.76 in Q3 to 2.59 now. The company's most recent dividend yield sits at 1.98%, which has decreased by 0.2% from 2.18% last quarter.
SpartanNash saw a decrease in earnings per share from 0.7 in Q3 to 0.43 now. The company's most recent dividend yield sits at 4.22%, which has increased by 0.04% from 4.18% last 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.
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