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 industrials sector that may be worth watching:
- Kelly Services (NASDAQ:KELYB) – P/E: 6.44
- Golden Ocean Group (NASDAQ:GOGL) – P/E: 5.01
- Huttig Building Products (NASDAQ:HBP) – P/E: 5.68
- Universal Logistics Hldgs (NASDAQ:ULH) – P/E: 6.78
- Owens-Corning (NYSE:OC) – P/E: 9.0
Kelly Services’s earnings per share for Q3 sits at 0.25, whereas in Q2, they were at 0.49. Its most recent dividend yield is at 0.94%, which has increased by 0.08% from 0.86% in the previous quarter.
Golden Ocean Group saw an increase in earnings per share from 0.52 in Q2 to 0.97 now. Most recently, the company reported a dividend yield of 42.55%, which has increased by 23.91% from last quarter’s yield of 18.64%.
Huttig Building Products’s earnings per share for Q3 sits at 0.57, whereas in Q2, they were at 0.54. Huttig Building Products does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Universal Logistics Hldgs has reported Q3 earnings per share at 0.74, which has decreased by 22.11% compared to Q2, which was 0.95. Its most recent dividend yield is at 1.95%, which has increased by 0.07% from 1.88% in the previous quarter.
Most recently, Owens-Corning reported earnings per share at 2.52, whereas in Q2 earnings per share sat at 2.6. Its most recent dividend yield is at 1.1%, which has increased by 0.03% from 1.07% 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.