A Look Into Industrials Sector Value Stocks

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.

Below is a list of notable value stocks in the industrials sector:

  1. Mueller Industries MLI - P/E: 9.74
  2. Kelly Services KELYA - P/E: 8.63
  3. L.B. Foster FSTR - P/E: 9.31
  4. Pangaea Logistics Solns PANL - P/E: 9.04
  5. Builders FirstSource BLDR - P/E: 9.53

Most recently, Mueller Industries reported earnings per share at 1.92, whereas in Q1 earnings per share sat at 1.11. Most recently, the company reported a dividend yield of 1.22%, which has increased by 0.12% from last quarter's yield of 1.1%.

Kelly Services has reported Q1 earnings per share at 0.12, which has decreased by 70.73% compared to Q4, which was 0.41. The company's most recent dividend yield sits at 1.68%, which has increased by 0.44% from 1.24% last quarter.

L.B. Foster's earnings per share for Q2 sits at 0.27, whereas in Q1, they were at -0.12. Most recently, the company reported a dividend yield of 1.57%, which has increased by 0.18% from last quarter's yield of 1.39%.

Pangaea Logistics Solns's earnings per share for Q2 sits at 0.29, whereas in Q1, they were at 0.09. Most recently, the company reported a dividend yield of 3.75%, which has increased by 0.9% from last quarter's yield of 2.85%.

This quarter, Builders FirstSource experienced an increase in earnings per share, which was 1.1 in Q1 and is now 2.76. Builders FirstSource 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.

Posted In: BZI-VSNews