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.
Benzinga Insights has compiled a list of value stocks in the industrials sector that may be worth watching:
- CompoSecure CMPO - P/E: 5.97
- PROG Holdings PRG - P/E: 8.99
- Greenpro Capital GRNQ - P/E: 3.0
- Capital Product Partners CPLP - P/E: 5.19
- Safe Bulkers SB - P/E: 5.17
CompoSecure has reported Q3 earnings per share at $0.24, which has decreased by 4.0% compared to Q2, which was 0.25. PROG Holdings saw a decrease in earnings per share from 0.92 in Q2 to $0.9 now. Most recently, Greenpro Capital reported earnings per share at $-0.02, whereas in Q2 earnings per share sat at $0.86. Capital Product Partners has reported Q3 earnings per share at $0.84, which has increased by 12.0% compared to Q2, which was 0.75. Most recently, the company reported a dividend yield of 4.32%, which has increased by 0.39% from last quarter's yield of 3.93%.
Safe Bulkers saw a decrease in earnings per share from 0.12 in Q2 to $0.08 now. Its most recent dividend yield is at 6.17%, which has ('', 'not changed') by 0.0% from 6.17% in the previous 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.
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