5 Value Stocks In The Consumer Defensive Sector
Understanding 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.
Benzinga Insights has compiled a list of value stocks in the consumer defensive sector that may be worth watching:
- Perdoceo Education (NASDAQ:PRDO) - P/E: 9.88
- Brasilagro - Cia Bras (NYSE:LND) - P/E: 5.75
- Post Hldgs (NYSE:POST) - P/E: 6.31
- Amcon Distributing (AMEX:DIT) - P/E: 5.87
- United Natural Foods (NYSE:UNFI) - P/E: 9.38
Perdoceo Education's earnings per share for Q4 sits at $0.31, whereas in Q3, they were at 0.39. Brasilagro - Cia Bras saw a decrease in earnings per share from 0.08 in Q1 to $0.0 now. Most recently, Post Hldgs reported earnings per share at $1.08, whereas in Q4 earnings per share sat at $0.85. Most recently, the company reported a dividend yield of 6.43%, which has increased by 0.76% from last quarter's yield of 5.67%.
This quarter, Amcon Distributing experienced a decrease in earnings per share, which was $7.97 in Q4 and is now $4.46. This quarter, United Natural Foods experienced a decrease in earnings per share, which was $1.13 in Q1 and is now $0.78.
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.