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5 Value Stocks 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. Donegal Group (NASDAQ:DGICA) - P/E: 8.28
  2. Athene Holding (NYSE:ATH) - P/E: 8.0
  3. Northrim BanCorp (NASDAQ:NRIM) - P/E: 7.68
  4. Camden National (NASDAQ:CAC) - P/E: 9.39
  5. Randolph Bancorp (NASDAQ:RNDB) - P/E: 6.42

Donegal Group has reported Q3 earnings per share at 0.32, which has decreased by 47.54% compared to Q2, which was 0.61. The company's most recent dividend yield sits at 4.16%, which has decreased by 0.01% from 4.17% last quarter.

Athene Holding saw an increase in earnings per share from 0.58 in Q2 to 1.53 now. Athene Holding does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Northrim BanCorp saw an increase in earnings per share from 1.52 in Q2 to 1.84 now. Its most recent dividend yield is at 4.34%, which has decreased by 1.04% from 5.38% in the previous quarter.

Camden National saw an increase in earnings per share from 1.11 in Q3 to 1.22 now. Most recently, the company reported a dividend yield of 3.75%, which has decreased by 0.62% from last quarter's yield of 4.37%.

Most recently, Randolph Bancorp reported earnings per share at 2.01, whereas in Q2 earnings per share sat at 1.02. Randolph 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

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