Understanding 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 financial services sector:
- Equity Bancshares EQBK - P/E: 9.33
- First Savings Financial FSFG - P/E: 6.42
- Hawthorn Bancshares HWBK - P/E: 7.96
- Cohen & Co COHN - P/E: 1.09
- Mizuho Financial Gr MFG - P/E: 6.17
Equity Bancshares has reported Q4 earnings per share at 0.61, which has decreased by 23.75% compared to Q3, which was 0.8. Most recently, the company reported a dividend yield of 1.0%, which has decreased by 0.06% from last quarter's yield of 1.06%.
Most recently, First Savings Financial reported earnings per share at 0.6, whereas in Q4 earnings per share sat at 0.67. Its most recent dividend yield is at 1.8%, which has increased by 0.07% from 1.73% in the previous quarter.
Most recently, Hawthorn Bancshares reported earnings per share at 0.88, whereas in Q2 earnings per share sat at 0.74. Its most recent dividend yield is at 2.52%, which has decreased by 0.1% from 2.62% in the previous quarter.
This quarter, Cohen & Co experienced a decrease in earnings per share, which was 0.78 in Q2 and is now -3.57. Most recently, the company reported a dividend yield of 4.68%, which has decreased by 0.38% from last quarter's yield of 5.06%.
Mizuho Financial Gr's earnings per share for Q2 sits at 0.1, whereas in Q1, they were at 0.18.
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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