A Look Into Consumer Defensive Sector Value Stocks

Understanding Value Stocks

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.

The following stocks are considered to be notable value stocks in the consumer defensive sector:

1. Perdoceo Education (NASDAQ:PRDO) - P/E: 7.26
2. Ingles Markets (NASDAQ:IMKTA) - P/E: 5.34
3. SpartanNash (NASDAQ:SPTN) - P/E: 8.76
4. Lifevantage (NASDAQ:LFVN) - P/E: 8.63
5. Seneca Foods (NASDAQ:SENEA) - P/E: 3.63

Most recently, Perdoceo Education reported earnings per share at 0.44, whereas in Q4 earnings per share sat at 0.39. Perdoceo Education does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Ingles Markets's earnings per share for Q2 sits at 2.58, whereas in Q1, they were at 2.66. Most recently, the company reported a dividend yield of 1.03%, which has decreased by 0.59% from last quarter's yield of 1.62%.

SpartanNash saw an increase in earnings per share from 0.43 in Q4 to 0.56 now. The company's most recent dividend yield sits at 3.99%, which has decreased by 0.23% from 4.22% last quarter.

Most recently, Lifevantage reported earnings per share at 0.2, whereas in Q2 earnings per share sat at 0.25. Lifevantage does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Seneca Foods's earnings per share for Q4 sits at 1.62, whereas in Q3, they were at 7.9. Seneca Foods does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.