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5 Value Stocks In The Consumer Defensive Sector

What is a Value Stock?

05/07/2021 09:42

What is a Value Stock?

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 consumer defensive sector:

  1. Bunge (NYSE:BG) - P/E: 6.06
  2. Perdoceo Education (NASDAQ:PRDO) - P/E: 6.91
  3. SpartanNash (NASDAQ:SPTN) - P/E: 9.56
  4. Lifevantage (NASDAQ:LFVN) - P/E: 9.38
  5. Seneca Foods (NASDAQ:SENEA) - P/E: 3.39

This quarter, Bunge experienced an increase in earnings per share, which was 3.05 in Q4 and is now 3.13. The company's most recent dividend yield sits at 2.45%, which has decreased by 0.11% from 2.56% last quarter.

This quarter, Perdoceo Education experienced an increase in earnings per share, which was 0.39 in Q4 and is now 0.44. Perdoceo Education does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, SpartanNash experienced a decrease in earnings per share, which was 0.7 in Q3 and is now 0.43. Its most recent dividend yield is at 4.22%, which has increased by 0.04% from 4.18% in the previous quarter.

This quarter, Lifevantage experienced a decrease in earnings per share, which was 0.25 in Q2 and is now 0.2. Lifevantage does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Seneca Foods saw an increase in earnings per share from 1.97 in Q2 to 7.9 now. Seneca Foods does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.