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 consumer defensive sector that may be worth watching:
- Seneca Foods SENEA - P/E: 7.68
- Tyson Foods TSN - P/E: 8.52
- Hailiang Education Gr HLG - P/E: 4.64
- Graham Hldgs GHC - P/E: 8.6
- Alico ALCO - P/E: 6.36
Seneca Foods has reported Q3 earnings per share at $2.14, which has increased by 63.36% compared to Q2, which was 1.31. This quarter, Tyson Foods experienced an increase in earnings per share, which was $2.3 in Q4 and is now $2.87. The company's most recent dividend yield sits at 1.86%, which has decreased by 0.35% from 2.21% last quarter.
Most recently, Hailiang Education Gr reported earnings per share at $0.8, whereas in Q3 earnings per share sat at $0.64. Most recently, Graham Hldgs reported earnings per share at $8.55, whereas in Q3 earnings per share sat at $7.44. Its most recent dividend yield is at 1.07%, which has increased by 0.03% from 1.04% in the previous quarter.
Alico saw an increase in earnings per share from -0.33 in Q4 to $-0.24 now. Its most recent dividend yield is at 6.14%, which has increased by 0.32% from 5.82% in the previous quarter.
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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