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 labeled as a value stock.

Benzinga Insights has compiled a list of value stocks in the consumer defensive sector that may be worth watching:

1. Big Lots BIG - P/E: 7.92
2. Pingtan Marine Enterprise PME - P/E: 6.83
3. Mannatech MTEX - P/E: 9.38
4. Perdoceo Education PRDO - P/E: 9.94
5. Adtalem Glb Education ATGE - P/E: 7.25

Big Lots has reported Q2 earnings per share at 2.75, which has increased by 118.25% compared to Q1, which was 1.26. Most recently, the company reported a dividend yield of 2.15%, which has decreased by 0.93% from last quarter’s yield of 3.08%.

Most recently, Pingtan Marine Enterprise reported earnings per share at -0.02, whereas in Q1 earnings per share sat at 0.1. Most recently, the company reported a dividend yield of 1.47%, which has increased by 0.49% from last quarter’s yield of 0.98%.

Mannatech saw a decrease in earnings per share from 1.15 in Q1 to 0.47 now. Its most recent dividend yield is at 3.39%, which has increased by 0.29% from 3.1% in the previous quarter.

Most recently, Perdoceo Education reported earnings per share at 0.41, whereas in Q1 earnings per share sat at 0.42. Perdoceo Education does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Adtalem Glb Education reported earnings per share at 0.58, whereas in Q3 earnings per share sat at 0.81. Adtalem Glb Education does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.