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.
Benzinga Insights has compiled a list of value stocks in the industrials sector that may be worth watching:
- Atkore (NYSE:ATKR) - P/E: 6.36
- Textainer Gr Hldgs (NYSE:TGH) - P/E: 5.25
- ZIM Integrated Shipping (NYSE:ZIM) - P/E: 0.52
- Performance Shipping (NASDAQ:PSHG) - P/E: 0.29
- Seanergy Maritime Hldgs (NASDAQ:SHIP) - P/E: 5.04
Atkore's earnings per share for Q1 sits at $4.61, whereas in Q4, they were at 5.52. Textainer Gr Hldgs has reported Q4 earnings per share at $1.38, which has decreased by 15.85% compared to Q3, which was 1.64. The company's most recent dividend yield sits at 3.54%, which has increased by 0.2% from 3.34% last quarter.
ZIM Integrated Shipping has reported Q4 earnings per share at $3.44, which has decreased by 64.39% compared to Q3, which was 9.66. Most recently, the company reported a dividend yield of 130.81%, which has increased by 86.06% from last quarter's yield of 44.75%.
Performance Shipping saw a decrease in earnings per share from 1.5 in Q3 to $1.18 now. Most recently, Seanergy Maritime Hldgs reported earnings per share at $0.05, whereas in Q3 earnings per share sat at $0.4. The company's most recent dividend yield sits at 16.31%, which has decreased by 3.71% from 20.02% last 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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