What are 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.
Benzinga Insights has compiled a list of value stocks in the industrials sector that may be worth watching:
- Danaos (NYSE:DAC) - P/E: 2.05
- Cresud SACIF (NASDAQ:CRESY) - P/E: 5.61
- BlueLinx Hldgs (NYSE:BXC) - P/E: 2.61
- AerCap Holdings (NYSE:AER) - P/E: 7.74
- Global Ship Lease (NYSE:GSL) - P/E: 6.26
This quarter, Danaos experienced an increase in earnings per share, which was $5.32 in Q3 and is now $6.1. The company's most recent dividend yield sits at 3.16%, which has increased by 0.34% from 2.82% last quarter.
This quarter, Cresud SACIF experienced an increase in earnings per share, which was $0.42 in Q1 and is now $2.73. The company's most recent dividend yield sits at 2.07%, which has decreased by 0.69% from 2.76% last quarter.
This quarter, BlueLinx Hldgs experienced an increase in earnings per share, which was $4.74 in Q3 and is now $7.3. AerCap Holdings saw a decrease in earnings per share from 4.04 in Q3 to $1.04 now. This quarter, Global Ship Lease experienced an increase in earnings per share, which was $1.74 in Q3 and is now $1.84. Most recently, the company reported a dividend yield of 3.67%, which has decreased by 2.29% from last quarter's yield of 5.96%.
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.
