The Meaning Behind Value Stocks
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 financial services sector:
- Primis Finl FRST - P/E: 9.91
- TriplePoint Venture Gwth TPVG - P/E: 8.58
- Associated Capital Group AC - P/E: 9.48
- Northrim BanCorp NRIM - P/E: 7.29
- American Intl Gr AIG - P/E: 8.94
This quarter, Primis Finl experienced a decrease in earnings per share, which was 0.42 in Q2 and is now 0.25. The company's most recent dividend yield sits at 2.77%, which has increased by 0.18% from 2.59% last quarter.
TriplePoint Venture Gwth saw an increase in earnings per share from 0.3 in Q2 to 0.32 now. Most recently, the company reported a dividend yield of 8.06%, which has decreased by 0.94% from last quarter's yield of 9.0%.
Associated Capital Group's earnings per share for Q3 sits at 0.07, whereas in Q2, they were at 1.34. Its most recent dividend yield is at 0.54%, which has decreased by 0.02% from 0.56% in the previous quarter.
Northrim BanCorp saw an increase in earnings per share from 1.33 in Q2 to 1.42 now. Most recently, the company reported a dividend yield of 3.74%, which has increased by 0.31% from last quarter's yield of 3.43%.
Most recently, American Intl Gr reported earnings per share at 0.97, whereas in Q2 earnings per share sat at 1.52. Most recently, the company reported a dividend yield of 2.1%, which has decreased by 0.62% from last quarter's yield of 2.72%.
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.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.