5 Value Stocks To Watch In The Consumer Defensive Sector

Understanding 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 consumer defensive sector:

1. Cal-Maine Foods CALM - P/E: 3.09
2. Village Super Market VLGEA - P/E: 9.24
3. Adecoagro AGRO - P/E: 8.53
4. Herbalife HLF - P/E: 5.72
5. Tarena International TEDU - P/E: 2.84

Cal-Maine Foods's earnings per share for Q3 sits at $6.62, whereas in Q2, they were at 4.07. Most recently, the company reported a dividend yield of 15.92%, which has increased by 7.45% from last quarter's yield of 8.47%.

Most recently, Village Super Market reported earnings per share at $0.85, whereas in Q1 earnings per share sat at $0.76. Its most recent dividend yield is at 4.41%, which has increased by 0.14% from 4.27% in the previous quarter.

Adecoagro's earnings per share for Q1 sits at $0.36, whereas in Q4, they were at 0.17. The company's most recent dividend yield sits at 7.86%, which has increased by 0.43% from 7.43% last quarter.

Most recently, Herbalife reported earnings per share at $0.54, whereas in Q4 earnings per share sat at $0.53. The company's most recent dividend yield sits at 1.71%, which has decreased by 1.82% from 3.53% last quarter.

This quarter, Tarena International experienced a decrease in earnings per share, which was $0.45 in Q3 and is now $-0.18. The company's most recent dividend yield sits at 0.0%, which has decreased by 4.32% from 4.32% last quarter.

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.