What are 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.

Below is a list of notable value stocks in the industrials sector:

1. L.B. Foster FSTR - P/E: 5.63
2. Global Ship Lease GSL - P/E: 6.49
3. Danaos DAC - P/E: 1.31
4. AerCap Holdings AER - P/E: 3.15
5. GrafTech International EAF - P/E: 3.57

Most recently, L.B. Foster reported earnings per share at 0.41, whereas in Q1 earnings per share sat at -0.18. Most recently, the company reported a dividend yield of 1.57%, which has increased by 0.18% from last quarter’s yield of 1.39%.

Global Ship Lease saw a decrease in earnings per share from 0.59 in Q1 to 0.42 now. Global Ship Lease does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Danaos saw an increase in earnings per share from 1.34 in Q1 to 1.71 now. Danaos does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

AerCap Holdings has reported Q2 earnings per share at 1.92, which has decreased by 10.28% compared to Q1, which was 2.14. AerCap Holdings does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

GrafTech International’s earnings per share for Q2 sits at 0.35, whereas in Q1, they were at 0.45. The company’s most recent dividend yield sits at 0.64%, which has increased by 0.13% from 0.51% 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.