What Defines 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:
- Bunge BG - P/E: 5.86
- Lincoln Educational Servs LINC - P/E: 3.62
- Big Lots BIG - P/E: 6.48
- China Online Education Gr COE - P/E: 3.59
- Vector Group VGR - P/E: 9.86
Bunge has reported Q2 earnings per share at 2.61, which has decreased by 16.61% compared to Q1, which was 3.13. Most recently, the company reported a dividend yield of 2.79%, which has increased by 0.34% from last quarter's yield of 2.45%.
Lincoln Educational Servs's earnings per share for Q2 sits at 0.06, whereas in Q1, they were at 0.13. Lincoln Educational Servs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Big Lots has reported Q2 earnings per share at 1.09, which has decreased by 58.4% compared to Q1, which was 2.62. Most recently, the company reported a dividend yield of 2.09%, which has increased by 0.19% from last quarter's yield of 1.9%.
Most recently, China Online Education Gr reported earnings per share at 0.05, whereas in Q4 earnings per share sat at 0.21. China Online Education Gr does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Vector Group's earnings per share for Q2 sits at 0.63, whereas in Q1, they were at 0.29. Most recently, the company reported a dividend yield of 5.61%, which has increased by 0.14% from last quarter's yield of 5.47%.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.