What Defines a Value Stock?
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 cyclical sector that may be worth watching:
- Abercrombie & Fitch ANF - P/E: 5.82
- 1847 Goedeker GOED - P/E: 1.81
- KB Home KBH - P/E: 4.02
- Jerash Holdings (US) JRSH - P/E: 7.27
- Big 5 Sporting Goods BGFV - P/E: 2.96
Most recently, Abercrombie & Fitch reported earnings per share at $-0.27, whereas in Q4 earnings per share sat at $1.14. Most recently, the company reported a dividend yield of 1.94%, which has decreased by 2.94% from last quarter's yield of 4.88%.
This quarter, 1847 Goedeker experienced an increase in earnings per share, which was $0.03 in Q4 and is now $0.06. This quarter, KB Home experienced an increase in earnings per share, which was $1.47 in Q1 and is now $2.32. Most recently, the company reported a dividend yield of 1.93%, which has increased by 0.55% from last quarter's yield of 1.38%.
Jerash Holdings (US)'s earnings per share for Q4 sits at $-0.01, whereas in Q3, they were at 0.13. The company's most recent dividend yield sits at 3.41%, which has increased by 0.16% from 3.25% last quarter.
Big 5 Sporting Goods's earnings per share for Q1 sits at $0.41, whereas in Q4, they were at 0.89. The company's most recent dividend yield sits at 6.6%, which has increased by 0.56% from 6.04% last 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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