A Look Into Consumer Defensive Sector Value Stocks
What Defines 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.
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: 8.4
- Altria Group (NYSE:MO) - P/E: 8.31
- Village Super Market (NASDAQ:VLGEA) - P/E: 7.11
- Sunlands Technology (NYSE:STG) - P/E: 0.88
- Ingles Markets (NASDAQ:IMKTA) - P/E: 6.65
This quarter, Perdoceo Education experienced an increase in earnings per share, which was $0.61 in Q2 and is now $0.64. Altria Group saw a decrease in earnings per share from 1.31 in Q2 to $1.28 now. Its most recent dividend yield is at 9.09%, which has increased by 0.8% from 8.29% in the previous quarter.
This quarter, Village Super Market experienced an increase in earnings per share, which was $0.69 in Q3 and is now $1.05. Its most recent dividend yield is at 4.48%, which has increased by 0.08% from 4.4% in the previous quarter.
Sunlands Technology has reported Q2 earnings per share at $1.73, which has decreased by 8.71% compared to Q1, which was 1.9. Ingles Markets's earnings per share for Q3 sits at $2.54, whereas in Q2, they were at 2.13. Its most recent dividend yield is at 0.88%, which has increased by 0.09% from 0.79% in the previous 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.