Market Overview

5 Value Stocks To Watch In The Financial Services Sector

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What are 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.

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

  1. Credit Suisse Group (NYSE:CS) - P/E: 7.94
  2. Federated Hermes (NYSE:FHI) - P/E: 9.72
  3. Security National Finl (NASDAQ:SNFCA) - P/E: 3.44
  4. Summit State Bank (NASDAQ:SSBI) - P/E: 8.58
  5. Nomura Holdings (NYSE:NMR) - P/E: 7.72

Credit Suisse Group has reported Q3 earnings per share at 0.24, which has decreased by 50.0% compared to Q2, which was 0.48. Its most recent dividend yield is at 1.27%, which has increased by 0.37% from 0.9% in the previous quarter.

Most recently, Federated Hermes reported earnings per share at 0.85, whereas in Q2 earnings per share sat at 0.8. The company's most recent dividend yield sits at 17.64%, which has increased by 12.88% from 4.76% last quarter.

Security National Finl's earnings per share for Q3 sits at 1.51, whereas in Q2, they were at 1.1. Security National Finl does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Summit State Bank has reported Q3 earnings per share at 0.49, which has increased by 32.43% compared to Q2, which was 0.37. Most recently, the company reported a dividend yield of 3.87%, which has decreased by 1.36% from last quarter's yield of 5.23%.

This quarter, Nomura Holdings experienced an increase in earnings per share, which was 0.15 in Q1 and is now 0.2. Nomura Holdings 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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Posted-In: BZI-VSEarnings News Dividends