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.
The following stocks are considered to be notable value stocks in the financial services sector:
- Unum (NYSE:UNM) - P/E: 7.73
- Oak Valley (NASDAQ:OVLY) - P/E: 10.0
- Hope Bancorp (NASDAQ:HOPE) - P/E: 7.81
- Capital Bancorp (NASDAQ:CBNK) - P/E: 7.66
- NMI Holdings (NASDAQ:NMIH) - P/E: 6.31
This quarter, Unum experienced an increase in earnings per share, which was $0.89 in Q4 and is now $1.36. Most recently, the company reported a dividend yield of 3.66%, which has decreased by 0.66% from last quarter's yield of 4.32%.
Oak Valley's earnings per share for Q4 sits at $0.42, whereas in Q3, they were at 0.56. Its most recent dividend yield is at 1.67%, which has decreased by 0.02% from 1.69% in the previous quarter.
This quarter, Hope Bancorp experienced an increase in earnings per share, which was $0.43 in Q4 and is now $0.5. Most recently, the company reported a dividend yield of 3.6%, which has increased by 0.01% from last quarter's yield of 3.59%.
Capital Bancorp looks to be undervalued. It possesses an EPS of $0.71, which has not changed since last quarter (Q4). The company's most recent dividend yield sits at 0.86%, which has increased by 0.08% from 0.78% last quarter.
NMI Holdings has reported Q1 earnings per share at $0.77, which has increased by 5.48% compared to Q4, which was 0.73.
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.
