Overview Of Value Stocks In The Consumer Defensive Sector
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.
The following stocks are considered to be notable value stocks in the consumer defensive sector:
- Herbalife Nutrition (NYSE:HLF) - P/E: 5.97
- Skillsoft (NYSE:SKIL) - P/E: 2.04
- Sunlands Technology (NYSE:STG) - P/E: 1.62
- Seneca Foods (NASDAQ:SENEB) - P/E: 8.89
- Mannatech (NASDAQ:MTEX) - P/E: 7.42
Herbalife Nutrition saw a decrease in earnings per share from 0.91 in Q3 to $0.53 now. Most recently, the company reported a dividend yield of 1.71%, which has decreased by 1.82% from last quarter's yield of 3.53%.
Skillsoft saw a decrease in earnings per share from 0.09 in Q2 to $-0.19 now. Sunlands Technology saw an increase in earnings per share from 1.26 in Q2 to $1.69 now. Seneca Foods has reported Q3 earnings per share at $2.74, which has increased by 34.98% compared to Q2, which was 2.03. Mannatech has reported Q3 earnings per share at $0.61, which has increased by 79.41% compared to Q2, which was 0.34. The company's most recent dividend yield sits at 3.77%, which has increased by 0.57% from 3.2% 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.