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5 Value Stocks To Watch In The Financial Services Sector

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What Defines a Value Stock?

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:

  1. American Equity Inv (NYSE:AEL) - P/E: 3.2
  2. Level One Bancorp (NASDAQ:LEVL) - P/E: 8.9
  3. GAMCO Investors (NYSE:GBL) - P/E: 9.27
  4. 360 DigiTech (NASDAQ:QFIN) - P/E: 9.37
  5. First Horizon (NYSE:FHN) - P/E: 8.27

This quarter, American Equity Inv experienced a decrease in earnings per share, which was 1.01 in Q2 and is now -2.72. Its most recent dividend yield is at 1.2%, which has increased by 0.16% from 1.04% in the previous quarter.

Level One Bancorp has reported Q4 earnings per share at 1.02, which has increased by 52.24% compared to Q3, which was 0.67. Its most recent dividend yield is at 0.94%, which has decreased by 0.29% from 1.23% in the previous quarter.

GAMCO Investors has reported Q4 earnings per share at 0.74, which has increased by 19.35% compared to Q3, which was 0.62. GAMCO Investors does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

360 DigiTech has reported Q3 earnings per share at 1.18, which has increased by 43.9% compared to Q2, which was 0.82. 360 DigiTech does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, First Horizon experienced an increase in earnings per share, which was 0.35 in Q3 and is now 0.46. The company's most recent dividend yield sits at 4.28%, which has decreased by 1.3% from 5.58% last quarter.

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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