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.
Benzinga Insights has compiled a list of value stocks in the industrials sector that may be worth watching:
- Pyxis Tankers PXS - P/E: 1.82
- AerCap Holdings AER - P/E: 9.04
- Leonardo DRS DRS - P/E: 9.65
- Euroseas ESEA - P/E: 1.49
- Castor Maritime CTRM - P/E: 0.47
Pyxis Tankers saw an increase in earnings per share from 0.53 in Q4 to $0.71 now. AerCap Holdings saw a decrease in earnings per share from 2.66 in Q4 to $2.34 now. Leonardo DRS's earnings per share for Q1 sits at $0.07, whereas in Q4, they were at 0.35. Euroseas's earnings per share for Q1 sits at $3.09, whereas in Q4, they were at 2.5. The company's most recent dividend yield sits at 10.66%, which has increased by 0.2% from 10.46% last quarter.
Castor Maritime's earnings per share for Q1 sits at $-0.07, whereas in Q4, they were at 0.36.
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.