A Look Into Financial Services Sector Value Stocks
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.
The following stocks are considered to be notable value stocks in the financial services sector:
- First Mid Bancshares (NASDAQ:FMBH) - P/E: 9.63
- Fidelity D & D Bancorp (NASDAQ:FDBC) - P/E: 8.18
- Lufax Holding (NYSE:LU) - P/E: 4.82
- Maiden Hldgs (NASDAQ:MHLD) - P/E: 4.38
- First Community (NASDAQ:FCCO) - P/E: 8.91
Most recently, First Mid Bancshares reported earnings per share at $0.9, whereas in Q1 earnings per share sat at $0.96. The company's most recent dividend yield sits at 2.4%, which has increased by 0.01% from 2.39% last quarter.
Fidelity D & D Bancorp saw an increase in earnings per share from 1.32 in Q1 to $1.35 now. Most recently, the company reported a dividend yield of 3.4%, which has increased by 0.26% from last quarter's yield of 3.14%.
Lufax Holding saw a decrease in earnings per share from 0.34 in Q1 to $0.18 now. Its most recent dividend yield is at 7.49%, which has increased by 0.72% from 6.77% in the previous quarter.
Maiden Hldgs saw an increase in earnings per share from -0.08 in Q1 to $0.19 now. The company's most recent dividend yield sits at 2.67%, which has decreased by 4.92% from 7.59% last quarter.
First Community saw a decrease in earnings per share from 0.46 in Q1 to $0.41 now. The company's most recent dividend yield sits at 2.83%, which has increased by 0.3% from 2.53% 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.