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 labeled as a value stock.
Benzinga Insights has compiled a list of value stocks in the consumer defensive sector that may be worth watching:
- Mannatech MTEX - P/E: 8.71
- BellRing Brands BRBR - P/E: 6.56
- Big Lots BIG - P/E: 2.91
- Ingles Markets IMKTA - P/E: 5.49
- Adtalem Glb Education ATGE - P/E: 6.08
Mannatech’s earnings per share for Q2 sits at 0.47, whereas in Q1, they were at 1.15. Its most recent dividend yield is at 3.63%, which has increased by 0.24% from 3.39% in the previous quarter.
BellRing Brands’s earnings per share for Q3 sits at 0.08, whereas in Q2, they were at 0.11. BellRing Brands does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Big Lots experienced an increase in earnings per share, which was 1.26 in Q1 and is now 2.75. Its most recent dividend yield is at 2.15%, which has decreased by 0.93% from 3.08% in the previous quarter.
Ingles Markets has reported Q3 earnings per share at 3.1, which has increased by 55.78% compared to Q2, which was 1.99. The company’s most recent dividend yield sits at 1.81%, which has increased by 0.17% from 1.64% last quarter.
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.
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