Understanding 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.
Below is a list of notable value stocks in the industrials sector:
- Globus Maritime GLBS - P/E: 0.59
- Corporacion America CAAP - P/E: 9.27
- Hub Group HUBG - P/E: 7.4
- Draganfly DPRO - P/E: 3.86
- Veritiv VRTV - P/E: 5.42
Globus Maritime's earnings per share for Q3 sits at $0.21, whereas in Q2, they were at 0.54. Corporacion America has reported Q3 earnings per share at $0.36, which has decreased by 16.28% compared to Q2, which was 0.43. Hub Group has reported Q3 earnings per share at $2.61, which has decreased by 13.86% compared to Q2, which was 3.03. Draganfly saw a decrease in earnings per share from 0.01 in Q2 to $-0.12 now. Veritiv has reported Q3 earnings per share at $6.86, which has increased by 12.09% compared to Q2, which was 6.12.
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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