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:
- Old Point Financial (NASDAQ:OPOF) – P/E: 8.03
- BCB Bancorp (NASDAQ:BCBP) – P/E: 4.22
- Bank of Montreal (NYSE:BMO) – P/E: 7.43
- Wesbanco (NASDAQ:WSBC) – P/E: 7.35
- Cambridge (NASDAQ:CATC) – P/E: 6.87
Old Point Financial’s earnings per share for Q1 sits at $0.62, whereas in Q4, they were at 0.53. Its most recent dividend yield is at 2.16%, which has decreased by 0.03% from 2.19% in the previous quarter.
BCB Bancorp has reported Q1 earnings per share at $0.46, which has decreased by 33.33% compared to Q4, which was 0.69. Most recently, the company reported a dividend yield of 5.52%, which has increased by 1.98% from last quarter’s yield of 3.54%.
Most recently, Bank of Montreal reported earnings per share at $2.4, whereas in Q4 earnings per share sat at $2.29. The company’s most recent dividend yield sits at 4.37%, which has increased by 0.02% from 4.35% last quarter.
Wesbanco has reported Q1 earnings per share at $0.71, which has decreased by 15.48% compared to Q4, which was 0.84. Its most recent dividend yield is at 3.79%, which has increased by 0.31% from 3.48% in the previous quarter.
Cambridge saw a decrease in earnings per share from 1.92 in Q4 to $1.62 now. Most recently, the company reported a dividend yield of 4.28%, which has increased by 1.05% from last quarter’s yield of 3.23%.
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.
