What are Value Stocks?
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:
- GFL Environmental GFL - P/E: 1.84
- Worthington Industries WOR - P/E: 6.36
- GrafTech International EAF - P/E: 7.76
- Atlas Air Worldwide Hldgs AAWW - P/E: 4.28
- KNOT Offshore Partners KNOP - P/E: 9.84
GFL Environmental saw a decrease in earnings per share from 0.13 in Q3 to 0.03 now. Its most recent dividend yield is at 0.14%, which has decreased by 0.04% from 0.18% in the previous quarter.
Worthington Industries saw an increase in earnings per share from 0.64 in Q1 to 0.95 now. Its most recent dividend yield is at 1.9%, which has decreased by 0.75% from 2.65% in the previous quarter.
This quarter, GrafTech International experienced an increase in earnings per share, which was 0.35 in Q3 and is now 0.47. Most recently, the company reported a dividend yield of 0.41%, which has decreased by 0.17% from last quarter's yield of 0.58%.
This quarter, Atlas Air Worldwide Hldgs experienced an increase in earnings per share, which was 2.84 in Q3 and is now 4.83. Atlas Air Worldwide Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, KNOT Offshore Partners experienced an increase in earnings per share, which was 0.66 in Q2 and is now 0.77. The company's most recent dividend yield sits at 12.0%, which has decreased by 3.62% from 15.62% 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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