5 Value Stocks To Watch In The Consumer Defensive Sector

What Defines 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.

The following stocks are considered to be notable value stocks in the consumer defensive sector:

1. S&W Seed SANW - P/E: 4.88
2. Sunlands Technology STG - P/E: 1.09
3. Cal-Maine Foods CALM - P/E: 3.03
4. Amcon Distributing DIT - P/E: 9.6
5. Chegg CHGG - P/E: 8.27

S&W Seed has reported Q3 earnings per share at $-0.07, which has increased by 46.15% compared to Q2, which was -0.13. Most recently, Sunlands Technology reported earnings per share at $1.73, whereas in Q1 earnings per share sat at $1.9. This quarter, Cal-Maine Foods experienced a decrease in earnings per share, which was $6.62 in Q3 and is now $2.27. The company's most recent dividend yield sits at 6.73%, which has decreased by 9.19% from 15.92% last quarter.

Most recently, Amcon Distributing reported earnings per share at $6.59, whereas in Q2 earnings per share sat at $3.49. The company's most recent dividend yield sits at 0.31%, which has decreased by 0.08% from 0.39% last quarter.

Chegg's earnings per share for Q2 sits at $0.28, whereas in Q1, they were at 0.27.

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.