5 Value Stocks To Watch In The Consumer Defensive Sector

The Meaning Behind 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. Graham Hldgs GHC - P/E: 5.49
2. DAVIDsTEA DTEA - P/E: 1.85
3. Lincoln Educational Servs LINC - P/E: 4.07
4. Ingles Markets IMKTA - P/E: 5.75
5. Natural Alternatives Intl NAII - P/E: 7.46

Graham Hldgs's earnings per share for Q2 sits at 3.88, whereas in Q1, they were at 4.18. Its most recent dividend yield is at 1.0%, which has increased by 0.03% from 0.97% in the previous quarter.

This quarter, DAVIDsTEA experienced a decrease in earnings per share, which was 0.04 in Q1 and is now -0.06. DAVIDsTEA does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Lincoln Educational Servs experienced a decrease in earnings per share, which was 0.13 in Q1 and is now 0.06. Lincoln Educational Servs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Ingles Markets experienced an increase in earnings per share, which was 2.58 in Q2 and is now 3.79. The company's most recent dividend yield sits at 1.01%, which has decreased by 0.1% from 1.11% last quarter.

This quarter, Natural Alternatives Intl experienced an increase in earnings per share, which was 0.3 in Q3 and is now 0.47. Natural Alternatives Intl 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.