A Look Into Financial Services Sector Value Stocks

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. SLM SLM - P/E: 9.66
  2. First Western Financial MYFW - P/E: 7.09
  3. Banco Santander Mexico BSMX - P/E: 7.73
  4. PennyMac Financial Servs PFSI - P/E: 3.59
  5. 360 DigiTech QFIN - P/E: 5.44

This quarter, SLM experienced an increase in earnings per share, which was -0.22 in Q2 and is now 0.47. Most recently, the company reported a dividend yield of 1.11%, which has decreased by 0.42% from last quarter's yield of 1.53%.

First Western Financial's earnings per share for Q3 sits at 1.2, whereas in Q2, they were at 1.13. First Western Financial does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Banco Santander Mexico has been featured as a value stock. Banco Santander Mexico's Q3 EPS sits at 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.

PennyMac Financial Servs saw an increase in earnings per share from 4.39 in Q2 to 7.03 now. Its most recent dividend yield is at 1.08%, which has decreased by 0.12% from 1.2% in the previous quarter.

This quarter, 360 DigiTech experienced an increase in earnings per share, which was 0.82 in Q2 and is now 1.18. 360 DigiTech 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.

Posted In: BZI-VSEarningsNewsDividendsFinancing