A Look Into Financial Services Sector Value Stocks

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 financial services sector:

1. HBT Finl HBT - P/E: 9.41
2. Old Second Bancorp OSBC - P/E: 6.74
3. Enova International ENVA - P/E: 9.91
4. Chemung Financial CHMG - P/E: 8.81
5. Fidus Investment FDUS - P/E: 8.96

Most recently, HBT Finl reported earnings per share at $0.6, whereas in Q3 earnings per share sat at $0.63. Its most recent dividend yield is at 3.74%, which has decreased by 0.04% from 3.78% in the previous quarter.

This quarter, Old Second Bancorp experienced a decrease in earnings per share, which was $0.55 in Q3 and is now $0.42. The company's most recent dividend yield sits at 1.33%, which has decreased by 0.14% from 1.47% last quarter.

This quarter, Enova International experienced an increase in earnings per share, which was $1.5 in Q3 and is now $1.83. Most recently, Chemung Financial reported earnings per share at $0.81, whereas in Q3 earnings per share sat at $1.61. Its most recent dividend yield is at 2.75%, which has decreased by 0.26% from 3.01% in the previous quarter.

Fidus Investment saw an increase in earnings per share from 0.62 in Q2 to $0.68 now.

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.