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5 Value Stocks In The Consumer Defensive Sector

What Defines 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 like...

Benzinga · 06/10/2022 12:59

What Defines 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.

The following stocks are considered to be notable value stocks in the consumer defensive sector:

  1. Amcon Distributing (AMEX:DIT) - P/E: 6.11
  2. DAVIDsTEA (NASDAQ:DTEA) - P/E: 0.94
  3. Lincoln Educational Servs (NASDAQ:LINC) - P/E: 7.02
  4. Adecoagro (NYSE:AGRO) - P/E: 6.75
  5. Seneca Foods (NASDAQ:SENEA) - P/E: 9.01

Amcon Distributing's earnings per share for Q2 sits at $5.19, whereas in Q1, they were at 5.18. The company's most recent dividend yield sits at 0.43%, which has ('', 'not changed') by 0.0% from 0.43% last quarter.

DAVIDsTEA has reported Q4 earnings per share at $0.06, which has increased by 200.0% compared to Q3, which was -0.06. This quarter, Lincoln Educational Servs experienced a decrease in earnings per share, which was $0.73 in Q4 and is now $0.0. Adecoagro saw a decrease in earnings per share from 0.52 in Q4 to $0.13 now. Seneca Foods's earnings per share for Q3 sits at $2.14, whereas in Q2, they were at 1.31.

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.