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.
Benzinga Insights has compiled a list of value stocks in the financial services sector that may be worth watching:
- OFS Capital (NASDAQ:OFS) – P/E: 3.11
- ProSight Global (NYSE:PROS) – P/E: 9.64
- Bain Capital Specialty (NYSE:BCSF) – P/E: 5.99
- TriplePoint Venture Gwth (NYSE:TPVG) – P/E: 8.73
- Greenhill & Co (NYSE:GHL) – P/E: 9.3
OFS Capital saw an increase in earnings per share from 0.22 in Q4 to 0.23 now. Its most recent dividend yield is at 9.53%, which has decreased by 0.57% from 10.1% in the previous quarter.
Most recently, ProSight Global reported earnings per share at 0.84, whereas in Q4 earnings per share sat at -0.09. ProSight Global does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Bain Capital Specialty has been featured as a value stock. Bain Capital Specialty’s Q1 EPS sits at 0.34, which has not changed since last quarter (Q4). Its most recent dividend yield is at 8.56%, which has decreased by 1.18% from 9.74% in the previous quarter.
Most recently, TriplePoint Venture Gwth reported earnings per share at 0.29, whereas in Q4 earnings per share sat at 0.39. Most recently, the company reported a dividend yield of 9.16%, which has decreased by 0.76% from last quarter’s yield of 9.92%.
This quarter, Greenhill & Co experienced a decrease in earnings per share, which was 2.71 in Q4 and is now 0.09. Most recently, the company reported a dividend yield of 1.01%, which has decreased by 0.67% from last quarter’s yield of 1.68%.
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.
