What defines a value stock?
A value stock is traditionally defined in terms of how investors in the market evaluate the future growth prospects of that company. Low P/E multiples are good basic indicators that the company is undervalued and can most likely be labeled a value stock.
Below is a list of notable value stocks in the financial services sector:
- Blackstone secured BXSL – P/E: 10.0
- Capital One Finance COF – P/E: 4.39
- Medallion Fin MFIN – P/E: 3.23
- Landmark Bancorp LARK – P/E: 9.09
- Brookline Bancorp BRKL – P/E: 8.94
Blackstone Secured reported an increase in earnings per share to now $0.62 from $0.61 in the first quarter. This quarter, Capital One Financial saw its earnings per share decline, which was $5.62 in the first quarter and is now $4.96. Most recently, the company reported a dividend yield of 2.26%, up 0.47% from last quarter’s 1.79% yield.
Most recently, Medallion Finl reported earnings per share of $0.54, while earnings per share for the first quarter were $0.39. The company’s most recent dividend yield is 5.3%, up 1.21% from 4.09% last quarter.
Landmark Bancorp’s earnings per share for the second quarter are $0.61 compared to $0.62 for the first quarter. The company’s most recent dividend yield is 3.31%, up 0.07% from 3.24% last quarter.
Most recently, Brookline Bancorp reported earnings per share of $0.33, while earnings per share for the first quarter were $0.32. Its most recent dividend yield is 3.78%, up 0.21% from 3.57% in the previous quarter.
The significance: A value stock can take time to recover from its undervalued position. The risk of investing in a value stock is that it may never happen.
