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 labelled as a value stock.
Below is a list of notable value stocks in the consumer defensive sector:
- Seneca Foods SENEA - P/E: 3.53
- SpartanNash SPTN - P/E: 9.12
- Mannatech MTEX - P/E: 7.32
- Lincoln Educational Servs LINC - P/E: 4.32
- Perdoceo Education PRDO - P/E: 6.87
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.
SpartanNash's earnings per share for Q4 sits at 0.43, whereas in Q3, they were at 0.7. Its most recent dividend yield is at 4.22%, which has increased by 0.04% from 4.18% in the previous quarter.
Mannatech saw a decrease in earnings per share from 0.76 in Q3 to 0.34 now. Mannatech does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Lincoln Educational Servs has reported Q4 earnings per share at 0.31, which has increased by 287.5% compared to Q3, which was 0.08. Lincoln Educational Servs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Perdoceo Education reported earnings per share at 0.39, whereas in Q3 earnings per share sat at 0.35. Perdoceo Education 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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