What Defines a Value Stock?
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.
The following stocks are considered to be notable value stocks in the industrials sector:
- L.B. Foster FSTR - P/E: 3.83
- StealthGas GASS - P/E: 9.56
- Seanergy Maritime Hldgs SHIP - P/E: 0.29
- Sterling Construction Co STRL - P/E: 9.88
- International Seaways INSW - P/E: 4.76
Most recently, L.B. Foster reported earnings per share at 0.09, whereas in Q2 earnings per share sat at 0.41. Its most recent dividend yield is at 1.57%, which has increased by 0.18% from 1.39% in the previous quarter.
StealthGas has reported Q3 earnings per share at 0.08, which has decreased by 68.0% compared to Q2, which was 0.25. StealthGas does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Seanergy Maritime Hldgs saw an increase in earnings per share from -0.65 in Q2 to -0.02 now. Seanergy Maritime Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Sterling Construction Co has reported Q3 earnings per share at 0.55, which has decreased by 15.38% compared to Q2, which was 0.65. Sterling Construction Co does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
International Seaways saw a decrease in earnings per share from 2.39 in Q2 to 0.98 now. Most recently, the company reported a dividend yield of 1.75%, which has increased by 0.35% from last quarter's yield of 1.4%.
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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