What are 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.
Benzinga Insights has compiled a list of value stocks in the industrials sector that may be worth watching:
- Hertz Global Holdings HTZ - P/E: 5.14
- Brookfield Bus Partners BBU - P/E: 3.3
- Navios Maritime Partners NMM - P/E: 2.44
- Performance Shipping PSHG - P/E: 0.49
- AGCO AGCO - P/E: 7.01
Hertz Global Holdings's earnings per share for Q4 sits at $-1.36, whereas in Q3, they were at 0.7. Most recently, Brookfield Bus Partners reported earnings per share at $9.25, whereas in Q3 earnings per share sat at $1.33. Its most recent dividend yield is at 1.12%, which has decreased by 0.78% from 1.9% in the previous quarter.
Navios Maritime Partners has reported Q4 earnings per share at $4.32, which has increased by 61.19% compared to Q3, which was 2.68. The company's most recent dividend yield sits at 0.71%, which has decreased by 0.17% from 0.88% last quarter.
Performance Shipping has reported Q3 earnings per share at $0.27, which has decreased by 41.3% compared to Q2, which was 0.46. AGCO has reported Q4 earnings per share at $3.78, which has decreased by 4.79% compared to Q3, which was 3.97. Its most recent dividend yield is at 1.01%, which has decreased by 0.02% from 1.03% 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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