The Meaning Behind 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 consumer defensive sector:
- China Online Education Gr (NYSE:COE) - P/E: 1.72
- Acme United (AMEX:ACU) - P/E: 9.5
- RLX Technology (NYSE:RLX) - P/E: 7.17
- United Natural Foods (NYSE:UNFI) - P/E: 9.64
- Herbalife Nutrition (NYSE:HLF) - P/E: 6.27
This quarter, China Online Education Gr experienced a decrease in earnings per share, which was $0.38 in Q4 and is now $-0.94. Acme United's earnings per share for Q1 sits at $0.22, whereas in Q4, they were at 0.6. Its most recent dividend yield is at 1.74%, which has increased by 0.2% from 1.54% in the previous quarter.
This quarter, RLX Technology experienced a decrease in earnings per share, which was $0.06 in Q4 and is now $0.04. United Natural Foods has reported Q3 earnings per share at $1.1, which has decreased by 2.65% compared to Q2, which was 1.13. Herbalife Nutrition has reported Q1 earnings per share at $0.99, which has increased by 73.68% compared to Q4, which was 0.57. Most recently, the company reported a dividend yield of 1.71%, which has decreased by 1.82% from last quarter's yield of 3.53%.
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.
