A Look Into Consumer Defensive Sector Value Stocks


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


What Defines 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 consumer defensive sector:

  1. Big Lots (NYSE:BIG) - P/E: 5.66
  2. Ingles Markets (NASDAQ:IMKTA) - P/E: 8.08
  3. Adtalem Glb Education (NYSE:ATGE) - P/E: 8.18
  4. Mannatech (NASDAQ:MTEX) - P/E: 7.77
  5. Pingtan Marine Enterprise (NASDAQ:PME) - P/E: 5.02

Most recently, Big Lots reported earnings per share at 1.26, whereas in Q4 earnings per share sat at 2.39. Its most recent dividend yield is at 3.08%, which has decreased by 2.19% from 5.27% in the previous quarter.

Ingles Markets has reported Q2 earnings per share at 1.99, which has increased by 128.74% compared to Q1, which was 0.87. Its most recent dividend yield is at 1.64%, which has decreased by 0.39% from 2.03% in the previous quarter.

This quarter, Adtalem Glb Education experienced an increase in earnings per share, which was 0.57 in Q2 and is now 0.81. Adtalem Glb Education does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Mannatech’s earnings per share for Q1 sits at 1.15, whereas in Q4, they were at 0.87. The company’s most recent dividend yield sits at 3.39%, which has increased by 0.29% from 3.1% last quarter.

Most recently, Pingtan Marine Enterprise reported earnings per share at 0.1, whereas in Q4 earnings per share sat at -0.01. Its most recent dividend yield is at 1.47%, which has increased by 0.49% from 0.98% 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.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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Posted In: EarningsNewsPenny StocksDividends