The Meaning Behind Value Stocks
A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.
Benzinga Insights has compiled a list of value stocks in the consumer defensive sector that may be worth watching:
- Bridgford Foods BRID - P/E: 3.04
- Skillsoft SKIL - P/E: 1.68
- Herbalife Nutrition HLF - P/E: 4.69
- Ingles Markets IMKTA - P/E: 6.76
- The Real Good Food RGF - P/E: 9.55
Bridgford Foods's earnings per share for Q3 sits at $0.04, whereas in Q2, they were at -0.09. Skillsoft's earnings per share for Q3 sits at $-0.19, whereas in Q2, they were at 0.09. Most recently, Herbalife Nutrition reported earnings per share at $0.91, whereas in Q2 earnings per share sat at $0.96. Its most recent dividend yield is at 1.71%, which has decreased by 1.82% from 3.53% in the previous quarter.
This quarter, Ingles Markets experienced an increase in earnings per share, which was $3.57 in Q3 and is now $3.69. The company's most recent dividend yield sits at 0.81%, which has increased by 0.05% from 0.76% last quarter.
This quarter, The Real Good Food experienced a decrease in earnings per share, which was $-0.43 in Q2 and is now $-0.51.
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.
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