5 Value Stocks To Watch 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.
Below is a list of notable value stocks in the consumer defensive sector:
- Bridgford Foods (NASDAQ:BRID) - P/E: 2.24
- Grove Collaborative Hldgs (NYSE:GROV) - P/E: 0.2
- S&W Seed (NASDAQ:SANW) - P/E: 2.94
- Cal-Maine Foods (NASDAQ:CALM) - P/E: 3.16
- Chegg (NYSE:CHGG) - P/E: 7.71
Bridgford Foods has reported Q2 earnings per share at $0.02, which has decreased by 80.0% compared to Q1, which was 0.1. Grove Collaborative Hldgs's earnings per share for Q2 sits at $-0.32, whereas in Q1, they were at -0.4. This quarter, S&W Seed experienced a decrease in earnings per share, which was $-0.07 in Q3 and is now $-0.13. Cal-Maine Foods saw a decrease in earnings per share from 6.62 in Q3 to $2.27 now. The company's most recent dividend yield sits at 6.73%, which has decreased by 9.19% from 15.92% last quarter.
Chegg has reported Q2 earnings per share at $0.28, which has increased by 3.7% compared to Q1, which was 0.27.
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.
