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 financial services sector:
- First Guaranty Bancshares FGBI - P/E: 8.84
- Banco Santander Mexico BSMX - P/E: 7.31
- Summit Finl Gr SMMF - P/E: 9.04
- C&F Financial CFFI - P/E: 7.72
- Hope Bancorp HOPE - P/E: 9.5
First Guaranty Bancshares looks to be undervalued. It possesses an EPS of 0.53, which has not changed since last quarter (Q2). Most recently, the company reported a dividend yield of 4.81%, which has ('', 'not changed') by 0.0% from last quarter’s yield of 4.81%.
Banco Santander Mexico looks to be undervalued. It possesses an EPS of 0.03, which has not changed since last quarter (Q2). Its most recent dividend yield is at 4.7%, which has increased by 0.65% from 4.05% in the previous quarter.
Summit Finl Gr’s earnings per share for Q3 sits at 0.74, whereas in Q2, they were at 0.54. The company’s most recent dividend yield sits at 4.52%, which has increased by 0.36% from 4.16% last quarter.
Most recently, C&F Financial reported earnings per share at 1.85, whereas in Q2 earnings per share sat at 1.11. Its most recent dividend yield is at 4.08%, which has decreased by 0.77% from 4.85% in the previous quarter.
This quarter, Hope Bancorp experienced an increase in earnings per share, which was 0.22 in Q2 and is now 0.25. The company’s most recent dividend yield sits at 7.13%, which has increased by 0.49% from 6.64% last quarter.
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.
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