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:
- Atlas Air Worldwide Hldgs AAWW - P/E: 5.11
- Nordic American Tankers NAT - P/E: 9.35
- StealthGas GASS - P/E: 8.13
- GrafTech International EAF - P/E: 7.75
- Acacia Research ACTG - P/E: 3.95
Atlas Air Worldwide Hldgs's earnings per share for Q4 sits at 4.83, whereas in Q3, they were at 2.84. Atlas Air Worldwide Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Nordic American Tankers's earnings per share for Q4 sits at -0.19, whereas in Q3, they were at -0.07. Most recently, the company reported a dividend yield of 2.5%, which has decreased by 2.53% from last quarter's yield of 5.03%.
Most recently, StealthGas reported earnings per share at 0.03, whereas in Q3 earnings per share sat at 0.08. StealthGas does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
GrafTech International has reported Q4 earnings per share at 0.47, which has increased by 34.29% compared to Q3, which was 0.35. The company's most recent dividend yield sits at 0.41%, which has decreased by 0.17% from 0.58% last quarter.
Acacia Research has reported Q4 earnings per share at -0.47, which has decreased by 291.67% compared to Q3, which was -0.12. The company's most recent dividend yield sits at 5.79%, which has increased by 3.62% from 2.17% last 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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