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 industrials sector:
- Titan Machinery (NASDAQ:TITN) - P/E: 8.43
- Triton International (NYSE:TRTN) - P/E: 8.02
- Momentus (NASDAQ:MNTS) - P/E: 1.58
- Tredegar (NYSE:TG) - P/E: 6.77
- Costamare (NYSE:CMRE) - P/E: 4.34
Titan Machinery has reported Q4 earnings per share at $0.99, which has increased by 3.13% compared to Q3, which was 0.96. This quarter, Triton International experienced an increase in earnings per share, which was $2.67 in Q4 and is now $2.76. Most recently, the company reported a dividend yield of 4.2%, which has increased by 0.03% from last quarter's yield of 4.17%.
Momentus has reported Q4 earnings per share at $-0.05, which has increased by 44.44% compared to Q3, which was -0.09. Tredegar has reported Q4 earnings per share at $0.18, which has decreased by 18.18% compared to Q3, which was 0.22. Its most recent dividend yield is at 4.19%, which has increased by 0.43% from 3.76% in the previous quarter.
Costamare's earnings per share for Q4 sits at $0.91, whereas in Q3, they were at 0.66.
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.
