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 industrials sector:
- Eastern Co (NASDAQ:EML) - P/E: 9.89
- Castor Maritime (NASDAQ:CTRM) - P/E: 2.17
- USA Truck (NASDAQ:USAK) - P/E: 8.18
- PROG Holdings (NYSE:PRG) - P/E: 5.47
- XPO Logistics (NYSE:XPO) - P/E: 8.14
Eastern Co saw a decrease in earnings per share from 0.65 in Q4 to $0.46 now. Most recently, the company reported a dividend yield of 1.89%, which has increased by 0.16% from last quarter's yield of 1.73%.
Castor Maritime has reported Q1 earnings per share at $0.21, which has increased by 16.67% compared to Q4, which was 0.18. Most recently, USA Truck reported earnings per share at $1.48, whereas in Q4 earnings per share sat at $1.38. PROG Holdings saw a decrease in earnings per share from 0.57 in Q1 to $0.52 now. XPO Logistics saw a decrease in earnings per share from 1.34 in Q4 to $1.25 now.
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.