5 Value Stocks To Watch In The Financial Services Sector

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:

1. Sixth Street Specialty TSLX - P/E: 7.98
2. First Financial Bancor FFBC - P/E: 7.77
3. Lloyds Banking Group LYG - P/E: 4.77
4. BayCom BCML - P/E: 8.32
5. Financial Institutions FISI - P/E: 5.52

Sixth Street Specialty's earnings per share for Q3 sits at $0.6, whereas in Q2, they were at 0.59. This quarter, First Financial Bancor experienced a decrease in earnings per share, which was $0.72 in Q2 and is now $0.67. Its most recent dividend yield is at 4.85%, which has increased by 0.84% from 4.01% in the previous quarter.

Lloyds Banking Group has reported Q3 earnings per share at $0.1, which has increased by 25.0% compared to Q2, which was 0.08. This quarter, BayCom experienced a decrease in earnings per share, which was $0.59 in Q2 and is now $0.56. The company's most recent dividend yield sits at 1.94%, which has decreased by 0.15% from 2.09% last quarter.

Financial Institutions saw a decrease in earnings per share from 0.91 in Q2 to $0.88 now. The company's most recent dividend yield sits at 6.74%, which has increased by 0.12% from 6.62% 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.