5 Value Stocks To Watch In The Consumer Defensive Sector

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.

Benzinga Insights has compiled a list of value stocks in the consumer defensive sector that may be worth watching:

1. Herbalife Nutrition HLF - P/E: 8.62
2. Perdoceo Education PRDO - P/E: 7.21
3. Ingles Markets IMKTA - P/E: 6.31
4. DAVIDsTEA DTEA - P/E: 1.85
5. Big Lots BIG - P/E: 6.19

Herbalife Nutrition's earnings per share for Q3 sits at 1.21, whereas in Q2, they were at 1.52. The company's most recent dividend yield sits at 1.71%, which has decreased by 1.82% from 3.53% last quarter.

Perdoceo Education's earnings per share for Q3 sits at 0.45, whereas in Q2, they were at 0.41. This quarter, Ingles Markets experienced a decrease in earnings per share, which was 3.79 in Q3 and is now 3.78. Its most recent dividend yield is at 1.01%, which has decreased by 0.1% from 1.11% in the previous quarter.

DAVIDsTEA's earnings per share for Q2 sits at -0.06, whereas in Q1, they were at 0.04. This quarter, Big Lots experienced a decrease in earnings per share, which was 1.09 in Q2 and is now -0.14. Most recently, the company reported a dividend yield of 2.77%, which has increased by 0.68% from last quarter's yield of 2.09%.

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.