The Meaning Behind 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.
The following stocks are considered to be notable value stocks in the industrials sector:
- Kelly Services KELYA - P/E: 8.37
- Thomson Reuters TRI - P/E: 8.26
- Mesa Air Group MESA - P/E: 9.57
- Huttig Building Products HBP - P/E: 8.98
- Digital Ally DGLY - P/E: 3.22
Kelly Services saw a decrease in earnings per share from 0.41 in Q4 to 0.12 now. Its most recent dividend yield is at 1.68%, which has increased by 0.44% from 1.24% in the previous quarter.
Thomson Reuters has reported Q1 earnings per share at 0.58, which has increased by 7.41% compared to Q4, which was 0.54. The company's most recent dividend yield sits at 1.73%, which has decreased by 0.29% from 2.02% last quarter.
Most recently, Mesa Air Group reported earnings per share at 0.23, whereas in Q1 earnings per share sat at 0.36. Mesa Air Group does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Huttig Building Products saw an increase in earnings per share from 0.01 in Q4 to 0.3 now. Huttig Building Products does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Digital Ally experienced an increase in earnings per share, which was -0.08 in Q4 and is now 0.49. Digital Ally 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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