5 Value Stocks To Watch In The Consumer Defensive Sector


What Defines 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.

The following stocks are considered to be notable value stocks in the consumer defensive sector:

  1. Hailiang Education Gr HLG - P/E: 4.85
  2. Gravitas Education GEHI - P/E: 2.96
  3. Lifevantage LFVN - P/E: 6.45
  4. Natural Alternatives Intl NAII - P/E: 5.83
  5. Ingles Markets IMKTA - P/E: 6.03

Most recently, Hailiang Education Gr reported earnings per share at $0.8, whereas in Q3 earnings per share sat at $0.64. This quarter, Gravitas Education experienced an increase in earnings per share, which was $-0.06 in Q3 and is now $0.05. Most recently, Lifevantage reported earnings per share at $0.12, whereas in Q2 earnings per share sat at $0.05. Natural Alternatives Intl's earnings per share for Q3 sits at $0.41, whereas in Q2, they were at 0.3. Most recently, Ingles Markets reported earnings per share at $3.61, whereas in Q1 earnings per share sat at $3.48. Its most recent dividend yield is at 0.76%, which has increased by 0.05% from 0.71% 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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