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.
Benzinga Insights has compiled a list of value stocks in the industrials sector that may be worth watching:
- L S Starrett SCX – P/E: 4.66
- StealthGas GASS – P/E: 2.74
- Golden Ocean Group GOGL – P/E: 4.52
- Quanex Building Prods NX – P/E: 8.95
- Triton International TRTN – P/E: 7.64
L S Starrett has reported Q3 earnings per share at $0.35, which has decreased by 16.67% compared to Q2, which was 0.42. The company’s most recent dividend yield sits at 4.73%, which has decreased by 0.4% from 5.13% last quarter.
This quarter, StealthGas experienced an increase in earnings per share, which was $0.28 in Q4 and is now $0.45. Golden Ocean Group’s earnings per share for Q1 sits at $0.01, whereas in Q4, they were at 0.34. Most recently, the company reported a dividend yield of 4.68%, which has decreased by 3.74% from last quarter’s yield of 8.42%.
Quanex Building Prods saw a decrease in earnings per share from 0.75 in Q4 to $0.18 now. Its most recent dividend yield is at 1.53%, which has increased by 0.3% from 1.23% in the previous quarter.
Triton International has reported Q1 earnings per share at $2.42, which has decreased by 12.32% compared to Q4, which was 2.76. Its most recent dividend yield is at 3.39%, which has decreased by 0.45% from 3.84% in the previous 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.
Image and article originally from www.benzinga.com. Read the original article here.