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.
Below is a list of notable value stocks in the financial services sector:
- Blackstone Secured BXSL - P/E: 10.0
- Capital One Financial COF - P/E: 4.39
- Medallion Finl MFIN - P/E: 3.23
- Landmark Bancorp LARK - P/E: 9.09
- Brookline Bancorp BRKL - P/E: 8.94
Blackstone Secured saw an increase in earnings per share from 0.61 in Q1 to $0.62 now. This quarter, Capital One Financial experienced a decrease in earnings per share, which was $5.62 in Q1 and is now $4.96. Most recently, the company reported a dividend yield of 2.26%, which has increased by 0.47% from last quarter's yield of 1.79%.
Most recently, Medallion Finl reported earnings per share at $0.54, whereas in Q1 earnings per share sat at $0.39. The company's most recent dividend yield sits at 5.3%, which has increased by 1.21% from 4.09% last quarter.
Landmark Bancorp's earnings per share for Q2 sits at $0.61, whereas in Q1, they were at 0.62. The company's most recent dividend yield sits at 3.31%, which has increased by 0.07% from 3.24% last quarter.
Most recently, Brookline Bancorp reported earnings per share at $0.33, whereas in Q1 earnings per share sat at $0.32. Its most recent dividend yield is at 3.78%, which has increased by 0.21% from 3.57% 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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