What is a Value Stock?
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company’s future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.
Below is a list of notable value stocks in the industrials sector:
- PROG Holdings (NYSE:PRG) – P/E: 9.53
- Capital Product Partners (NASDAQ:CPLP) – P/E: 5.29
- Mueller Industries (NYSE:MLI) – P/E: 8.49
- MDU Resources Gr (NYSE:MDU) – P/E: 7.55
- Target Hospitality (NASDAQ:TH) – P/E: 6.25
PROG Holdings saw a decrease in earnings per share from 0.92 in Q2 to $0.9 now. Most recently, Capital Product Partners reported earnings per share at $0.84, whereas in Q2 earnings per share sat at $0.75. Its most recent dividend yield is at 4.32%, which has increased by 0.39% from 3.93% in the previous quarter.
Most recently, Mueller Industries reported earnings per share at $0.59, whereas in Q2 earnings per share sat at $1.56. The company’s most recent dividend yield sits at 1.53%, which has increased by 0.04% from 1.49% last quarter.
MDU Resources Gr looks to be undervalued. It possesses an EPS of $0.29, which has not changed since last quarter (Q2). The company’s most recent dividend yield sits at 2.67%, which has increased by 0.42% from 2.25% last quarter.
Target Hospitality’s earnings per share for Q3 sits at $0.43, whereas in Q2, they were at 0.44.
The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.
