A Look Into Financial Services Sector Value Stocks

What is a Value Stock?

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.

Below is a list of notable value stocks in the financial services sector:

1. Shinhan Finl Gr SHG - P/E: 5.14
2. First Citizens BancShares FCNCA - P/E: 1.86
3. Premier Financial PFC - P/E: 7.59
4. BOK Financial BOKF - P/E: 9.34
5. FS KKR Capital FSK - P/E: 8.41

This quarter, Shinhan Finl Gr experienced a decrease in earnings per share, which was $1.75 in Q2 and is now $1.68. First Citizens BancShares has reported Q3 earnings per share at $55.92, which has increased by 6.31% compared to Q2, which was 52.6. The company's most recent dividend yield sits at 0.5%, which has increased by 0.28% from 0.22% last quarter.

Most recently, Premier Financial reported earnings per share at $0.69, whereas in Q2 earnings per share sat at $0.68. Its most recent dividend yield is at 7.52%, which has increased by 1.03% from 6.49% in the previous quarter.

This quarter, BOK Financial experienced a decrease in earnings per share, which was $2.27 in Q2 and is now $2.04. Its most recent dividend yield is at 3.33%, which has increased by 0.91% from 2.42% in the previous quarter.

FS KKR Capital's earnings per share for Q3 sits at $0.8, whereas in Q2, they were at 0.78.

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.