What are 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.
Below is a list of notable value stocks in the consumer defensive sector:
- Adecoagro AGRO - P/E: 7.15
- Archer-Daniels Midland ADM - P/E: 7.33
- iHuman IH - P/E: 4.84
- Bunge Global BG - P/E: 6.7
- Seneca Foods SENEB - P/E: 6.68
Adecoagro has reported Q3 earnings per share at $0.83, which has increased by 107.5% compared to Q2, which was 0.4. Its most recent dividend yield is at 3.93%, which has increased by 0.21% from 3.72% in the previous quarter.
This quarter, Archer-Daniels Midland experienced a decrease in earnings per share, which was $1.89 in Q2 and is now $1.63. Its most recent dividend yield is at 3.8%, which has increased by 1.28% from 2.52% in the previous quarter.
Most recently, iHuman reported earnings per share at $0.14, whereas in Q2 earnings per share sat at $0.11. Bunge Global saw an increase in earnings per share from 2.99 in Q3 to $3.7 now. Its most recent dividend yield is at 2.49%, which has increased by 0.11% from 2.38% in the previous quarter.
This quarter, Seneca Foods experienced an increase in earnings per share, which was $3.01 in Q1 and is now $3.29.
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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