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.

Benzinga Insights has compiled a list of value stocks in the financial services sector that may be worth watching:

  1. Virtu Financial (NASDAQ:VIRT) - P/E: 5.94
  2. First American Financial (NYSE:FAF) - P/E: 9.69
  3. Chemung Financial (NASDAQ:CHMG) - P/E: 9.32
  4. Yiren Digital (NYSE:YRD) - P/E: 7.53
  5. Customers Bancorp (NYSE:CUBI) - P/E: 7.78

This quarter, Virtu Financial experienced a decrease in earnings per share, which was 1.73 in Q2 and is now 0.81. The company's most recent dividend yield sits at 4.38%, which has increased by 0.48% from 3.9% last quarter.

First American Financial's earnings per share for Q3 sits at 1.31, whereas in Q2, they were at 1.05. The company's most recent dividend yield sits at 4.01%, which has increased by 0.66% from 3.35% last quarter.

Chemung Financial has reported Q3 earnings per share at 1.19, which has decreased by 0.83% compared to Q2, which was 1.2. Its most recent dividend yield is at 2.88%, which has decreased by 0.53% from 3.41% in the previous quarter.

Most recently, Yiren Digital reported earnings per share at 0.13, whereas in Q2 earnings per share sat at -0.35. The company's most recent dividend yield sits at 1.34%, which has increased by 1.34% from 0.0% last quarter.

Customers Bancorp's earnings per share for Q3 sits at 1.2, whereas in Q2, they were at 0.61. Customers Bancorp 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 Financing