What is 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.
Benzinga Insights has compiled a list of value stocks in the consumer defensive sector that may be worth watching:
- Sunlands Technology (NYSE:STG) - P/E: 0.68
- Herbalife (NYSE:HLF) - P/E: 4.48
- S&W Seed (NASDAQ:SANW) - P/E: 6.16
- Village Super Market (NASDAQ:VLGEA) - P/E: 9.29
- United Natural Foods (NYSE:UNFI) - P/E: 8.71
Sunlands Technology saw an increase in earnings per share from 1.89 in Q4 to $1.9 now. Herbalife saw an increase in earnings per share from 0.53 in Q4 to $0.54 now. Its most recent dividend yield is at 1.71%, which has decreased by 1.82% from 3.53% in the previous quarter.
Most recently, S&W Seed reported earnings per share at $-0.07, whereas in Q2 earnings per share sat at $-0.13. Village Super Market saw an increase in earnings per share from 0.76 in Q1 to $0.85 now. The company's most recent dividend yield sits at 4.41%, which has increased by 0.14% from 4.27% last quarter.
United Natural Foods has reported Q2 earnings per share at $0.78, which has decreased by 30.97% compared to Q1, which was 1.13.
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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