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 industrials sector that may be worth watching:

1. Navios Maritime Container NMCI - P/E: 2.85
2. Northwest Pipe NWPX - P/E: 9.55
3. Willis Lease Finance WLFC - P/E: 3.79
4. ACCO Brands ACCO - P/E: 7.83
5. Barrett Business Services BBSI - P/E: 9.87

Most recently, Navios Maritime Container reported earnings per share at -0.06, whereas in Q1 earnings per share sat at 0.14. Navios Maritime Container does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Northwest Pipe experienced an increase in earnings per share, which was 0.33 in Q1 and is now 0.45. Northwest Pipe does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Willis Lease Finance saw an increase in earnings per share from 0.56 in Q1 to 0.74 now. Willis Lease Finance does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, ACCO Brands experienced an increase in earnings per share, which was 0.07 in Q1 and is now 0.12. Most recently, the company reported a dividend yield of 3.89%, which has increased by 0.23% from last quarter’s yield of 3.66%.

Barrett Business Services saw an increase in earnings per share from -0.45 in Q1 to 1.51 now. Its most recent dividend yield is at 2.23%, which has decreased by 0.44% from 2.67% in the previous 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.