What Defines a Value Stock?
A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.
Benzinga Insights has compiled a list of value stocks in the industrials sector that may be worth watching:
- L S Starrett (NYSE:SCX) - P/E: 4.82
- USD Partners (NYSE:USDP) - P/E: 6.85
- Mueller Industries (NYSE:MLI) - P/E: 7.83
- Seaboard (AMEX:SEB) - P/E: 5.99
- Staffing 360 Solutions (NASDAQ:STAF) - P/E: 0.05
This quarter, L S Starrett experienced an increase in earnings per share, which was 0.41 in Q3 and is now 0.6. Most recently, the company reported a dividend yield of 4.73%, which has decreased by 0.4% from last quarter's yield of 5.13%.
USD Partners has reported Q2 earnings per share at 0.24, which has decreased by 7.69% compared to Q1, which was 0.26. Most recently, the company reported a dividend yield of 7.01%, which has increased by 0.04% from last quarter's yield of 6.97%.
Mueller Industries's earnings per share for Q3 sits at 3.01, whereas in Q2, they were at 1.92. The company's most recent dividend yield sits at 1.22%, which has increased by 0.12% from 1.1% last quarter.
Seaboard's earnings per share for Q2 sits at 151.56, whereas in Q1, they were at 154.03. Its most recent dividend yield is at 0.22%, which has decreased by 0.02% from 0.24% in the previous quarter.
This quarter, Staffing 360 Solutions experienced an increase in earnings per share, which was -0.54 in Q1 and is now 0.75. Most recently, the company reported a dividend yield of 5.13%, which has increased by 2.13% from last quarter's yield of 3.0%.
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.