The Meaning Behind 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.
The following stocks are considered to be notable value stocks in the industrials sector:
- USD Partners (NYSE:USDP) - P/E: 8.14
- ZIM Integrated Shipping (NYSE:ZIM) - P/E: 1.59
- Atkore (NYSE:ATKR) - P/E: 6.36
- Eastern Co (NASDAQ:EML) - P/E: 9.03
- Alpha Pro Tech (AMEX:APT) - P/E: 8.56
Most recently, USD Partners reported earnings per share at $0.12, whereas in Q3 earnings per share sat at $0.13. Most recently, the company reported a dividend yield of 8.46%, which has increased by 1.45% from last quarter's yield of 7.01%.
ZIM Integrated Shipping has reported Q4 earnings per share at $14.17, which has increased by 16.53% compared to Q3, which was 12.16. The company's most recent dividend yield sits at 96.19%, which has increased by 76.23% from 19.96% last quarter.
Most recently, Atkore reported earnings per share at $4.58, whereas in Q4 earnings per share sat at $4.39. This quarter, Eastern Co experienced an increase in earnings per share, which was $0.64 in Q3 and is now $0.65. Its most recent dividend yield is at 1.73%, which has decreased by 0.09% from 1.82% in the previous quarter.
Alpha Pro Tech has reported Q4 earnings per share at $0.05, which has decreased by 16.67% compared to Q3, which was 0.06.
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.
