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.
Benzinga Insights has compiled a list of value stocks in the financial services sector that may be worth watching:
- Oak Valley (NASDAQ:OVLY) - P/E: 6.4
- Peapack Gladstone Finl (NASDAQ:PGC) - P/E: 8.5
- Security National Finl (NASDAQ:SNFCA) - P/E: 5.99
- CNFinance Hldgs (NYSE:CNF) - P/E: 7.13
- Intl General Insurance (NASDAQ:IGIC) - P/E: 6.29
Most recently, Oak Valley reported earnings per share at $0.89, whereas in Q2 earnings per share sat at $1.02. The company's most recent dividend yield sits at 1.64%, which has increased by 0.47% from 1.17% last quarter.
This quarter, Peapack Gladstone Finl experienced a decrease in earnings per share, which was $0.73 in Q2 and is now $0.49. Its most recent dividend yield is at 0.78%, which has increased by 0.1% from 0.68% in the previous quarter.
This quarter, Security National Finl experienced a decrease in earnings per share, which was $0.28 in Q2 and is now $0.18. CNFinance Hldgs saw an increase in earnings per share from 0.08 in Q2 to $0.1 now. This quarter, Intl General Insurance experienced a decrease in earnings per share, which was $0.83 in Q2 and is now $0.79. Most recently, the company reported a dividend yield of 0.33%, which has decreased by 0.05% from last quarter's yield of 0.38%.
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.