What is 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.
Below is a list of notable value stocks in the financial services sector:
- US Global Investors (NASDAQ:GROW) - P/E: 2.59
- Home Bancorp (NASDAQ:HBCP) - P/E: 7.54
- HMN Finl (NASDAQ:HMNF) - P/E: 7.74
- Lazard (NYSE:LAZ) - P/E: 9.42
- Ameris (NASDAQ:ABCB) - P/E: 9.42
Most recently, US Global Investors reported earnings per share at 0.16, whereas in Q4 earnings per share sat at -0.06. Most recently, the company reported a dividend yield of 1.78%, which has ('', 'not changed') by 0.0% from last quarter's yield of 1.78%.
Most recently, Home Bancorp reported earnings per share at 1.79, whereas in Q2 earnings per share sat at 1.34. Most recently, the company reported a dividend yield of 2.33%, which has decreased by 0.15% from last quarter's yield of 2.48%.
HMN Finl saw a decrease in earnings per share from 1.0 in Q2 to 0.81 now. This quarter, Lazard experienced a decrease in earnings per share, which was 1.28 in Q2 and is now 0.98. The company's most recent dividend yield sits at 3.68%, which has decreased by 0.55% from 4.23% last quarter.
Ameris saw a decrease in earnings per share from 1.25 in Q2 to 1.2 now. Its most recent dividend yield is at 1.29%, which has increased by 0.21% from 1.08% 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.
