A Look Into Industrials Sector Value Stocks
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.
Benzinga Insights has compiled a list of value stocks in the industrials sector that may be worth watching:
- BlueLinx Hldgs (NYSE:BXC) - P/E: 7.15
- Ardmore Shipping (NYSE:ASC) - P/E: 2.89
- MDU Resources Gr (NYSE:MDU) - P/E: 7.08
- L S Starrett (NYSE:SCX) - P/E: 3.53
- Titan Intl (NYSE:TWI) - P/E: 6.35
BlueLinx Hldgs saw an increase in earnings per share from 2.91 in Q2 to $2.98 now. Most recently, Ardmore Shipping reported earnings per share at $0.49, whereas in Q2 earnings per share sat at $0.57. Most recently, the company reported a dividend yield of 4.7%, which has decreased by 0.7% from last quarter's yield of 5.4%.
MDU Resources Gr looks to be undervalued. It possesses an EPS of $0.29, which has not changed since last quarter (Q2). The company's most recent dividend yield sits at 2.25%, which has decreased by 0.86% from 3.11% last quarter.
Most recently, L S Starrett reported earnings per share at $-0.05, whereas in Q3 earnings per share sat at $0.35. The company's most recent dividend yield sits at 4.73%, which has decreased by 0.4% from 5.13% last quarter.
This quarter, Titan Intl experienced a decrease in earnings per share, which was $0.43 in Q2 and is now $0.29. Its most recent dividend yield is at 1.04%, which has increased by 0.45% from 0.59% 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.