Overview Of Value Stocks In The Financial Services Sector
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.
Benzinga Insights has compiled a list of value stocks in the financial services sector that may be worth watching:
- Genworth Finl (NYSE:GNW) - P/E: 6.4
- Banco De Chile (NYSE:BCH) - P/E: 7.02
- Princeton Bancorp (NASDAQ:BPRN) - P/E: 7.07
- Invesco (NYSE:IVZ) - P/E: 9.86
- Business First Bancshares (NASDAQ:BFST) - P/E: 7.34
Genworth Finl has reported Q2 earnings per share at $0.18, which has increased by 5.88% compared to Q1, which was 0.17. Most recently, Banco De Chile reported earnings per share at $0.82, whereas in Q1 earnings per share sat at $0.66. Its most recent dividend yield is at 9.89%, which has increased by 3.32% from 6.57% in the previous quarter.
Most recently, Princeton Bancorp reported earnings per share at $0.66, whereas in Q1 earnings per share sat at $0.95. Its most recent dividend yield is at 4.1%, which has increased by 0.44% from 3.66% in the previous quarter.
This quarter, Invesco experienced a decrease in earnings per share, which was $0.38 in Q1 and is now $0.31. The company's most recent dividend yield sits at 4.45%, which has decreased by 0.3% from 4.75% last quarter.
Business First Bancshares has reported Q2 earnings per share at $0.7, which has increased by 27.27% compared to Q1, which was 0.55. Most recently, the company reported a dividend yield of 2.85%, which has decreased by 0.29% from last quarter's yield of 3.14%.
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.