5 Value Stocks To Watch In The Consumer Defensive Sector
What Defines a Value Stock?
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.
The following stocks are considered to be notable value stocks in the consumer defensive sector:
- Cal-Maine Foods (NASDAQ:CALM) - P/E: 6.2
- Altria Group (NYSE:MO) - P/E: 8.95
- Greenlane Hldgs (NASDAQ:GNLN) - P/E: 0.0
- Village Super Market (NASDAQ:VLGEA) - P/E: 7.48
- Archer-Daniels Midland (NYSE:ADM) - P/E: 7.47
Most recently, Cal-Maine Foods reported earnings per share at $0.65, whereas in Q1 earnings per share sat at $0.02. Most recently, the company reported a dividend yield of 0.82%, which has increased by 0.77% from last quarter's yield of 0.05%.
Altria Group's earnings per share for Q4 sits at $1.18, whereas in Q3, they were at 1.28. The company's most recent dividend yield sits at 9.21%, which has increased by 0.12% from 9.09% last quarter.
Greenlane Hldgs saw an increase in earnings per share from -6.56 in Q2 to $-1.91 now. Village Super Market's earnings per share for Q1 sits at $0.78, whereas in Q4, they were at 1.05. Most recently, the company reported a dividend yield of 4.0%, which has decreased by 0.48% from last quarter's yield of 4.48%.
This quarter, Archer-Daniels Midland experienced a decrease in earnings per share, which was $1.89 in Q2 and is now $1.63. Most recently, the company reported a dividend yield of 3.8%, which has increased by 1.28% from last quarter's yield of 2.52%.
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.