The Meaning Behind 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:
- Preferred Bank (NASDAQ:PFBC) – P/E: 6.46
- First Western Financial (NASDAQ:MYFW) – P/E: 10.0
- Hawthorn Bancshares (NASDAQ:HWBK) – P/E: 7.14
- Farmers National Banc (NASDAQ:FMNB) – P/E: 9.0
- Great Elm Group (NASDAQ:GEG) – P/E: 3.65
Preferred Bank looks to be undervalued. It possesses an EPS of $2.61, which has not changed since last quarter (Q1). Most recently, the company reported a dividend yield of 3.94%, which has decreased by 0.07% from last quarter’s yield of 4.01%.
This quarter, First Western Financial experienced a decrease in earnings per share, which was $0.58 in Q4 and is now $0.39. Hawthorn Bancshares has reported Q1 earnings per share at $0.46, which has decreased by 31.34% compared to Q4, which was 0.67. Most recently, the company reported a dividend yield of 3.02%, which has increased by 0.19% from last quarter’s yield of 2.83%.
Farmers National Banc’s earnings per share for Q1 sits at $0.44, whereas in Q4, they were at 0.42. The company’s most recent dividend yield sits at 5.68%, which has increased by 0.93% from 4.75% last quarter.
Great Elm Group saw a decrease in earnings per share from 0.48 in Q2 to $0.4 now.
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.
