5 Value Stocks To Watch In The Financial Services Sector

What is a Value Stock?

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.

Below is a list of notable value stocks in the financial services sector:

1. Deutsche Bank DB - P/E: 7.54
2. PennyMac Financial Servs PFSI - P/E: 6.02
3. Equity Bancshares EQBK - P/E: 9.45
4. Fidelity National Finl FNF - P/E: 7.2
5. Radian Group RDN - P/E: 4.7

Deutsche Bank saw an increase in earnings per share from 0.35 in Q2 to $0.57 now. PennyMac Financial Servs has reported Q3 earnings per share at $2.46, which has increased by 7.89% compared to Q2, which was 2.28. Its most recent dividend yield is at 1.69%, which has increased by 0.23% from 1.46% in the previous quarter.

Equity Bancshares saw a decrease in earnings per share from 0.94 in Q2 to $0.93 now. Most recently, the company reported a dividend yield of 1.14%, which has decreased by 0.19% from last quarter's yield of 1.33%.

Most recently, Fidelity National Finl reported earnings per share at $1.07, whereas in Q2 earnings per share sat at $1.9. The company's most recent dividend yield sits at 4.62%, which has increased by 0.17% from 4.45% last quarter.

Most recently, Radian Group reported earnings per share at $1.31, whereas in Q2 earnings per share sat at $1.36. Most recently, the company reported a dividend yield of 3.89%, which has increased by 0.29% from last quarter's yield of 3.6%.

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.