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:
- Qudian QD - P/E: 1.49
- Ameris ABCB - P/E: 9.84
- Jackson Financial JXN - P/E: 1.39
- Franklin Resources BEN - P/E: 9.81
- Unum UNM - P/E: 6.57
Qudian saw a decrease in earnings per share from 0.28 in Q1 to 0.17 now. Qudian does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Ameris saw a decrease in earnings per share from 1.25 in Q2 to 1.2 now. Most recently, the company reported a dividend yield of 1.29%, which has increased by 0.21% from last quarter's yield of 1.08%.
Jackson Financial saw a decrease in earnings per share from 6.74 in Q2 to 5.16 now. Update: A previous version of this article stated that Jackson Financial does not distribute dividends. We have been informed since then by a reputable source that Jackson has announced to pay a regular quarterly cash dividend of $0.50 per share starting in Q4 2021.
Franklin Resources's earnings per share for Q4 sits at 1.26, whereas in Q3, they were at 0.96. The company's most recent dividend yield sits at 3.55%, which has increased by 0.39% from 3.16% last quarter.
This quarter, Unum experienced a decrease in earnings per share, which was 1.39 in Q2 and is now 1.03. Its most recent dividend yield is at 4.36%, which has increased by 0.01% from 4.35% in the previous quarter.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.
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