A Look Into Financial Services Sector Value Stocks
What is 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.
The following stocks are considered to be notable value stocks in the financial services sector:
- First Northwest Bancorp (NASDAQ:FNWB) - P/E: 7.49
- American Intl Gr (NYSE:AIG) - P/E: 8.89
- Flushing Financial (NASDAQ:FFIC) - P/E: 8.94
- German American Bancorp (NASDAQ:GABC) - P/E: 9.04
- CB Financial Services (NASDAQ:CBFV) - P/E: 7.37
First Northwest Bancorp saw a decrease in earnings per share from 0.39 in Q1 to $0.2 now. The company's most recent dividend yield sits at 2.14%, which has decreased by 0.14% from 2.28% last quarter.
Most recently, American Intl Gr reported earnings per share at $1.75, whereas in Q1 earnings per share sat at $1.63. Its most recent dividend yield is at 2.39%, which has decreased by 0.41% from 2.8% in the previous quarter.
Flushing Financial's earnings per share for Q2 sits at $0.26, whereas in Q1, they were at 0.1. Most recently, the company reported a dividend yield of 5.74%, which has decreased by 3.28% from last quarter's yield of 9.02%.
German American Bancorp's earnings per share for Q2 sits at $0.75, whereas in Q1, they were at 0.71. Its most recent dividend yield is at 3.46%, which has increased by 0.3% from 3.16% in the previous quarter.
CB Financial Services saw a decrease in earnings per share from 0.77 in Q1 to $0.63 now. The company's most recent dividend yield sits at 4.45%, which has decreased by 0.28% from 4.73% 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.