What is 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 financial services sector that may be worth watching:
- ORIX (NYSE:IX) - P/E: 8.75
- SB Finl Gr (NASDAQ:SBFG) - P/E: 9.28
- Newtek Bus Servs (NASDAQ:NEWT) - P/E: 8.92
- Business First Bancshares (NASDAQ:BFST) - P/E: 9.09
- Ares Capital (NASDAQ:ARCC) - P/E: 6.08
ORIX's earnings per share for Q4 sits at $3.6, whereas in Q3, they were at 2.38. This quarter, SB Finl Gr experienced a decrease in earnings per share, which was $0.42 in Q4 and is now $0.3. The company's most recent dividend yield sits at 2.42%, which has increased by 0.09% from 2.33% last quarter.
Newtek Bus Servs's earnings per share for Q1 sits at $0.72, whereas in Q4, they were at 0.66. The company's most recent dividend yield sits at 11.65%, which has increased by 0.63% from 11.02% last quarter.
Most recently, Business First Bancshares reported earnings per share at $0.49, whereas in Q4 earnings per share sat at $0.57. The company's most recent dividend yield sits at 2.07%, which has increased by 0.3% from 1.77% last quarter.
Ares Capital saw a decrease in earnings per share from 0.58 in Q4 to $0.42 now.
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.
