Overview Of Value Stocks In The Consumer Defensive Sector
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.
Below is a list of notable value stocks in the consumer defensive sector:
- Bunge (NYSE:BG) - P/E: 9.07
- Natural Alternatives Intl (NASDAQ:NAII) - P/E: 6.27
- Industrias Bachoco SAB (NYSE:IBA) - P/E: 9.18
- Ingles Markets (NASDAQ:IMKTA) - P/E: 6.01
- Tarena International (NASDAQ:TEDU) - P/E: 2.95
This quarter, Bunge experienced a decrease in earnings per share, which was $3.45 in Q3 and is now $3.24. Most recently, the company reported a dividend yield of 2.6%, which has increased by 0.14% from last quarter's yield of 2.46%.
Natural Alternatives Intl has reported Q2 earnings per share at $0.31, which has increased by 72.22% compared to Q1, which was 0.18. Industrias Bachoco SAB has reported Q4 earnings per share at $0.08, which has decreased by 91.75% compared to Q3, which was 0.97. The company's most recent dividend yield sits at 2.28%, which has increased by 0.23% from 2.05% last quarter.
This quarter, Ingles Markets experienced a decrease in earnings per share, which was $3.69 in Q4 and is now $3.65. The company's most recent dividend yield sits at 0.75%, which has increased by 0.08% from 0.67% last quarter.
Tarena International saw a decrease in earnings per share from 0.45 in Q3 to $-0.18 now. The company's most recent dividend yield sits at 0.0%, which has decreased by 4.32% from 4.32% 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.