5 Value Stocks To Watch In The Consumer Defensive Sector

Understanding Value Stocks

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:

  1. Newell Brands NWL - P/E: 8.61
  2. Bridgford Foods BRID - P/E: 3.01
  3. Albertsons Companies ACI - P/E: 9.58
  4. Amcon Distributing DIT - P/E: 5.85
  5. 51 Talk Online Education COE - P/E: 2.86

This quarter, Newell Brands experienced an increase in earnings per share, which was $0.36 in Q1 and is now $0.57. Most recently, the company reported a dividend yield of 4.63%, which has increased by 0.68% from last quarter's yield of 3.95%.

Bridgford Foods has reported Q3 earnings per share at $0.04, which has increased by 144.44% compared to Q2, which was -0.09. This quarter, Albertsons Companies experienced a decrease in earnings per share, which was $1.0 in Q1 and is now $0.72. Amcon Distributing's earnings per share for Q3 sits at $10.27, whereas in Q2, they were at 5.19. Its most recent dividend yield is at 0.37%, which has decreased by 0.06% from 0.43% in the previous quarter.

This quarter, 51 Talk Online Education experienced an increase in earnings per share, which was $-0.94 in Q1 and is now $-0.67.

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.

Posted In: BZI-VSNews