5 Value Stocks To Watch In The Consumer Defensive Sector
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 consumer defensive sector:
- Sunlands Technology (NYSE:STG) - P/E: 1.0
- Bridgford Foods (NASDAQ:BRID) - P/E: 2.36
- Chegg (NYSE:CHGG) - P/E: 9.15
- iHuman (NYSE:IH) - P/E: 8.32
- Village Super Market (NASDAQ:VLGEA) - P/E: 7.31
Most recently, Sunlands Technology reported earnings per share at $1.73, whereas in Q1 earnings per share sat at $1.9. Most recently, Bridgford Foods reported earnings per share at $0.02, whereas in Q1 earnings per share sat at $0.1. This quarter, Chegg experienced an increase in earnings per share, which was $0.27 in Q1 and is now $0.28. This quarter, iHuman experienced an increase in earnings per share, which was $0.11 in Q4 and is now $0.15. Village Super Market has reported Q3 earnings per share at $0.69, which has decreased by 18.82% compared to Q2, which was 0.85. The company's most recent dividend yield sits at 4.4%, which has decreased by 0.01% from 4.41% last quarter.
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.