What Defines 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 consumer defensive sector that may be worth watching:
- Amcon Distributing DIT - P/E: 8.8
- Perdoceo Education PRDO - P/E: 6.75
- Alico ALCO - P/E: 9.12
- Graham Hldgs GHC - P/E: 7.5
- Bunge BG - P/E: 5.18
Amcon Distributing has reported Q2 earnings per share at 4.33, which has decreased by 22.26% compared to Q1, which was 5.57. The company's most recent dividend yield sits at 0.51%, which has decreased by 0.03% from 0.54% last quarter.
Perdoceo Education has reported Q1 earnings per share at 0.44, which has increased by 12.82% compared to Q4, which was 0.39. Perdoceo Education does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Alico experienced an increase in earnings per share, which was -0.23 in Q1 and is now 0.66. Its most recent dividend yield is at 6.19%, which has increased by 3.88% from 2.31% in the previous quarter.
Graham Hldgs has reported Q1 earnings per share at 4.18, which has decreased by 63.27% compared to Q4, which was 11.38. Most recently, the company reported a dividend yield of 0.97%, which has decreased by 0.01% from last quarter's yield of 0.98%.
Most recently, Bunge reported earnings per share at 3.13, whereas in Q4 earnings per share sat at 3.05. Most recently, the company reported a dividend yield of 2.45%, which has decreased by 0.11% from last quarter's yield of 2.56%.
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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