The Meaning Behind Value Stocks
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.
Below is a list of notable value stocks in the financial services sector:
- Franklin Resources (NYSE:BEN) - P/E: 7.2
- Flagstar Bancorp (NYSE:FBC) - P/E: 4.29
- Investors Title (NASDAQ:ITIC) - P/E: 5.72
- Fanhua (NASDAQ:FANH) - P/E: 8.68
- Financial Institutions (NASDAQ:FISI) - P/E: 6.51
Franklin Resources's earnings per share for Q1 sits at $1.08, whereas in Q4, they were at 1.26. The company's most recent dividend yield sits at 3.93%, which has increased by 0.53% from 3.4% last quarter.
Flagstar Bancorp has reported Q4 earnings per share at $1.69, which has decreased by 42.52% compared to Q3, which was 2.94. Most recently, the company reported a dividend yield of 0.48%, which has increased by 0.05% from last quarter's yield of 0.43%.
Most recently, Investors Title reported earnings per share at $9.94, whereas in Q3 earnings per share sat at $7.63. Most recently, the company reported a dividend yield of 0.95%, which has increased by 0.15% from last quarter's yield of 0.8%.
This quarter, Fanhua experienced a decrease in earnings per share, which was $0.19 in Q2 and is now $0.1. Its most recent dividend yield is at 4.25%, which has increased by 0.12% from 4.13% in the previous quarter.
Financial Institutions's earnings per share for Q4 sits at $1.21, whereas in Q3, they were at 1.05. Its most recent dividend yield is at 3.63%, which has increased by 0.32% from 3.31% in the previous quarter.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.
