Understanding Value Stocks

A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.

The following stocks are considered to be notable value stocks in the consumer defensive sector:

1. Big Lots BIG - P/E: 2.75
2. Adtalem Glb Education ATGE - P/E: 5.3
3. Kroger KR - P/E: 9.84
4. BellRing Brands BRBR - P/E: 5.45
5. Perdoceo Education PRDO - P/E: 7.72

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%.

Adtalem Glb Education’s earnings per share for Q4 sits at 0.58, whereas in Q3, they were 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.

Kroger’s earnings per share for Q2 sits at 0.73, whereas in Q1, they were at 1.22. Its most recent dividend yield is at 2.25%, which has increased by 0.06% from 2.19% in the previous quarter.

BellRing Brands has reported Q3 earnings per share at 0.08, which has decreased by 27.27% compared to Q2, which was 0.11. BellRing Brands does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.

These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.