Understanding 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.
The following stocks are considered to be notable value stocks in the consumer defensive sector:
- Herbalife HLF - P/E: 5.96
- Sunlands Technology STG - P/E: 0.73
- Ingles Markets IMKTA - P/E: 6.57
- Perdoceo Education PRDO - P/E: 9.48
- S&W Seed SANW - P/E: 2.31
Herbalife has reported Q2 earnings per share at $0.74, which has increased by 37.04% compared to Q1, which was 0.54. Most recently, the company reported a dividend yield of 1.71%, which has decreased by 1.82% from last quarter's yield of 3.53%.
Sunlands Technology saw a decrease in earnings per share from 1.9 in Q1 to $1.73 now. Most recently, Ingles Markets reported earnings per share at $2.54, whereas in Q2 earnings per share sat at $2.13. Its most recent dividend yield is at 0.88%, which has increased by 0.09% from 0.79% in the previous quarter.
Perdoceo Education's earnings per share for Q2 sits at $0.61, whereas in Q1, they were at 0.58. This quarter, S&W Seed experienced a decrease in earnings per share, which was $-0.07 in Q3 and is now $-0.13.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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