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.

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

GrafTech International has reported Q2 earnings per share at $0.44, which has decreased by 8.33% compared to Q1, which was 0.48. Its most recent dividend yield is at 0.51%, which has increased by 0.14% from 0.37% in the previous quarter.

P & F Industries has reported Q1 earnings per share at $-0.19, which has decreased by 165.52% compared to Q4, which was 0.29. Most recently, the company reported a dividend yield of 2.75%, which has decreased by 0.26% from last quarter's yield of 3.01%.

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.