Overview Of Value Stocks In The Industrials Sector

What is a Value Stock?

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:

1. Insteel Indus (NYSE:IIIN) - P/E: 7.77
2. Eastman Kodak (NYSE:KODK) - P/E: 8.83
3. Leonardo DRS (NASDAQ:DRS) - P/E: 9.9
4. KNOT Offshore Partners (NYSE:KNOP) - P/E: 7.77
5. Danaos (NYSE:DAC) - P/E: 3.7

Insteel Indus's earnings per share for Q2 sits at $0.26, whereas in Q1, they were at 0.57. Most recently, the company reported a dividend yield of 0.4%, which has ('', 'not changed') by 0.0% from last quarter's yield of 0.4%.

Eastman Kodak has reported Q1 earnings per share at $0.3, which has increased by 500.0% compared to Q4, which was 0.05. This quarter, Leonardo DRS experienced a decrease in earnings per share, which was $0.35 in Q4 and is now $0.07. This quarter, KNOT Offshore Partners experienced a decrease in earnings per share, which was $0.18 in Q4 and is now $-0.04. Its most recent dividend yield is at 2.05%, which has increased by 1.05% from 1.0% in the previous quarter.

Most recently, Danaos reported earnings per share at $7.14, whereas in Q4 earnings per share sat at $6.99. Most recently, the company reported a dividend yield of 5.3%, which has increased by 0.27% from last quarter's yield of 5.03%.

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.