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.
Below is a list of notable value stocks in the financial services sector:
- Maiden Hldgs (NASDAQ:MHLD) - P/E: 7.57
- Bank of N.T Butterfield (NYSE:NTB) - P/E: 6.58
- Golub Capital BDC (NASDAQ:GBDC) - P/E: 8.52
- Regions Finl (NYSE:RF) - P/E: 8.67
- Ares Capital (NASDAQ:ARCC) - P/E: 7.55
Maiden Hldgs's earnings per share for Q3 sits at $-0.12, whereas in Q2, they were at 0.04. Most recently, the company reported a dividend yield of 2.67%, which has decreased by 4.92% from last quarter's yield of 7.59%.
Most recently, Bank of N.T Butterfield reported earnings per share at $1.15, whereas in Q3 earnings per share sat at $1.16. Most recently, the company reported a dividend yield of 5.99%, which has decreased by 0.69% from last quarter's yield of 6.68%.
Golub Capital BDC has been featured as a value stock. Golub Capital BDC's Q1 EPS sits at $0.5, which has not changed since last quarter (Q4). Regions Finl saw an increase in earnings per share from 0.49 in Q3 to $0.52 now. Most recently, the company reported a dividend yield of 5.37%, which has decreased by 0.35% from last quarter's yield of 5.72%.
This quarter, Ares Capital experienced an increase in earnings per share, which was $0.59 in Q3 and is now $0.63. Its most recent dividend yield is at 9.63%, which has decreased by 0.58% from 10.21% 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.