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.
Below is a list of notable value stocks in the consumer defensive sector:
- Herbalife Nutrition (NYSE:HLF) - P/E: 5.47
- Andersons (NASDAQ:ANDE) - P/E: 9.0
- United Natural Foods (NYSE:UNFI) - P/E: 9.97
- Industrias Bachoco SAB (NYSE:IBA) - P/E: 7.26
- 51 Talk Online Education (NYSE:COE) - P/E: 2.54
Herbalife Nutrition saw a decrease in earnings per share from 0.96 in Q2 to $0.91 now. Most recently, the company reported a dividend yield of 1.71%, which has decreased by 1.82% from last quarter's yield of 3.53%.
Andersons saw a decrease in earnings per share from 2.39 in Q2 to $0.5 now. Its most recent dividend yield is at 2.18%, which has increased by 0.33% from 1.85% in the previous quarter.
This quarter, United Natural Foods experienced a decrease in earnings per share, which was $1.27 in Q4 and is now $1.13. This quarter, Industrias Bachoco SAB experienced a decrease in earnings per share, which was $2.94 in Q2 and is now $0.97. Most recently, the company reported a dividend yield of 2.28%, which has increased by 0.23% from last quarter's yield of 2.05%.
51 Talk Online Education's earnings per share for Q2 sits at $-2.68, whereas in Q1, they were at -3.76.
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.