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.
The following stocks are considered notable value stocks in the consumer defensive space:
- Herbalife Nutrition HLF – P/E: 6.16
- Bridford Foods BRIDGE – P/E: 3.38
- English markets IMKTA – P/E: 5.7
- Natural Alternatives Intl NAII – P/E: 5.46
- adecoagro AGRO – P/E: 5.44
This quarter, Herbalife Nutrition reported a decline in earnings per share, which was $0.99 in the first quarter and is now $0.96. Its most recent dividend yield is 1.71%, down 1.82% from 3.53% in the previous quarter.
This quarter, Bridgford Foods saw an increase in earnings per share, which was -$0.09 in the second quarter and is now $0.04. Most recently, Ingles Markets reported earnings per share of $3.57, while second-quarter earnings per share were $3.61. The company most recently reported a dividend yield of 0.81%, up 0.05% from last quarter’s 0.76% yield.
During the quarter, Natural Alternatives Intl saw an increase in earnings per share, which was $0.41 in the third quarter and is now $0.52. Adecoagro’s earnings per share are $0.4 for the second quarter, compared to $0.13 for the first 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.
