Understanding 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.
The following stocks are considered to be notable value stocks in the financial services sector:
- Esquire Financial Hldgs (NASDAQ:ESQ) - P/E: 9.67
- First Merchants (NASDAQ:FRME) - P/E: 9.02
- Timberland Bancorp (NASDAQ:TSBK) - P/E: 8.48
- Capital City Bank Group (NASDAQ:CCBG) - P/E: 8.22
- MainStreet Bancshares (NASDAQ:MNSB) - P/E: 5.57
This quarter, Esquire Financial Hldgs experienced an increase in earnings per share, which was $1.17 in Q3 and is now $1.18. Most recently, the company reported a dividend yield of 1.12%, which has increased by 0.15% from last quarter's yield of 0.97%.
This quarter, First Merchants experienced a decrease in earnings per share, which was $0.94 in Q3 and is now $0.87. The company's most recent dividend yield sits at 4.06%, which has decreased by 0.63% from 4.69% last quarter.
Timberland Bancorp's earnings per share for Q1 sits at $0.77, whereas in Q4, they were at 0.81. Most recently, the company reported a dividend yield of 3.26%, which has decreased by 0.06% from last quarter's yield of 3.32%.
Capital City Bank Group saw a decrease in earnings per share from 0.78 in Q3 to $0.7 now. Most recently, the company reported a dividend yield of 2.76%, which has increased by 0.1% from last quarter's yield of 2.66%.
MainStreet Bancshares saw a decrease in earnings per share from 0.77 in Q3 to $0.61 now. Its most recent dividend yield is at 2.13%, which has increased by 0.43% from 1.7% in the previous quarter.
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.