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 consumer cyclical sector that may be worth watching:
- Brinker International (NYSE:EAT) - P/E: 7.81
- Kandi Technologies Gr (NASDAQ:KNDI) - P/E: 6.81
- Skechers USA (NYSE:SKX) - P/E: 7.54
- Express (NYSE:EXPR) - P/E: 7.43
- Aarons (NYSE:AAN) - P/E: 5.91
This quarter, Brinker International experienced an increase in earnings per share, which was $0.71 in Q2 and is now $0.92. Its most recent dividend yield is at 3.47%, which has increased by 0.1% from 3.37% in the previous quarter.
Kandi Technologies Gr saw an increase in earnings per share from -0.05 in Q4 to $-0.02 now. Skechers USA has reported Q1 earnings per share at $0.77, which has increased by 79.07% compared to Q4, which was 0.43. Express saw a decrease in earnings per share from 0.11 in Q4 to $-0.1 now. Aarons saw an increase in earnings per share from 0.6 in Q4 to $0.87 now. Its most recent dividend yield is at 2.11%, which has decreased by 0.03% from 2.14% 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.
