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.
Benzinga Insights has compiled a list of value stocks in the financial services sector that may be worth watching:
- FS KKR Capital FSK - P/E: 2.19
- LexinFintech Holdings LX - P/E: 3.88
- C&F Financial CFFI - P/E: 6.58
- Community Financial TCFC - P/E: 9.21
- Banco Santander Mexico BSMX - P/E: 9.25
This quarter, FS KKR Capital experienced an increase in earnings per share, which was 0.63 in Q1 and is now 0.74. Its most recent dividend yield is at 12.1%, which has increased by 0.75% from 11.35% in the previous quarter.
Most recently, LexinFintech Holdings reported earnings per share at 0.63, whereas in Q1 earnings per share sat at 0.57. LexinFintech Holdings does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, C&F Financial reported earnings per share at 2.19, whereas in Q1 earnings per share sat at 1.92. Most recently, the company reported a dividend yield of 2.96%, which has decreased by 0.31% from last quarter's yield of 3.27%.
This quarter, Community Financial experienced an increase in earnings per share, which was 1.07 in Q1 and is now 1.1. Its most recent dividend yield is at 1.74%, which has decreased by 0.27% from 2.01% in the previous quarter.
Banco Santander Mexico saw an increase in earnings per share from 0.02 in Q1 to 0.03 now. The company's most recent dividend yield sits at 3.48%, which has decreased by 1.22% from 4.7% 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.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.