What are 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.
Benzinga Insights has compiled a list of value stocks in the consumer defensive sector that may be worth watching:
- Acme United ACU - P/E: 9.39
- DAVIDsTEA DTEA - P/E: 1.79
- Bunge BG - P/E: 5.57
- Alico ALCO - P/E: 7.6
- Herbalife Nutrition HLF - P/E: 8.94
Most recently, Acme United reported earnings per share at 0.5, whereas in Q2 earnings per share sat at 0.94. The company's most recent dividend yield sits at 1.28%, which has increased by 0.13% from 1.15% last quarter.
DAVIDsTEA looks to be undervalued. It possesses an EPS of -0.06, which has not changed since last quarter (Q2). Bunge's earnings per share for Q3 sits at 3.72, whereas in Q2, they were at 2.61. The company's most recent dividend yield sits at 2.3%, which has decreased by 0.49% from 2.79% last quarter.
Alico's earnings per share for Q4 sits at -0.33, whereas in Q3, they were at 0.51. Most recently, the company reported a dividend yield of 5.82%, which has increased by 0.26% from last quarter's yield of 5.56%.
This quarter, Herbalife Nutrition experienced a decrease in earnings per share, which was 1.52 in Q2 and is now 1.21. Most recently, the company reported a dividend yield of 1.71%, which has decreased by 1.82% from last quarter's yield of 3.53%.
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.
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