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.
Below is a list of notable value stocks in the consumer defensive sector:
- China Online Education Gr (NYSE:COE) - P/E: 4.33
- Amcon Distributing (AMEX:DIT) - P/E: 5.71
- Hailiang Education Gr (NASDAQ:HLG) - P/E: 4.72
- Seneca Foods (NASDAQ:SENEA) - P/E: 7.43
- Industrias Bachoco SAB (NYSE:IBA) - P/E: 8.0
China Online Education Gr saw a decrease in earnings per share from 0.05 in Q1 to $-0.13 now. This quarter, Amcon Distributing experienced a decrease in earnings per share, which was $11.0 in Q4 and is now $5.18. This quarter, Hailiang Education Gr experienced an increase in earnings per share, which was $0.64 in Q3 and is now $0.8. Seneca Foods saw an increase in earnings per share from 1.31 in Q2 to $2.14 now. Industrias Bachoco SAB saw a decrease in earnings per share from 0.82 in Q3 to $0.63 now. Its most recent dividend yield is at 1.92%, which has decreased by 0.02% from 1.94% 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.
