What are Value Stocks?
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company’s future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.
The following stocks are considered to be notable value stocks in the industrials sector:
- Tutor Perini (NYSE:TPC) – P/E: 9.02
- Nordic American Tankers (NYSE:NAT) – P/E: 5.52
- L.B. Foster (NASDAQ:FSTR) – P/E: 7.48
- BlueLinx Hldgs (NYSE:BXC) – P/E: 5.04
- Acacia Research (NASDAQ:ACTG) – P/E: 4.08
Tutor Perini’s earnings per share for Q4 sits at 0.69, whereas in Q3, they were at 0.72. Tutor Perini does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Nordic American Tankers experienced a decrease in earnings per share, which was -0.07 in Q3 and is now -0.19. The company’s most recent dividend yield sits at 2.5%, which has decreased by 2.53% from 5.03% last quarter.
L.B. Foster’s earnings per share for Q4 sits at 0.24, whereas in Q3, they were at 0.09. The company’s most recent dividend yield sits at 1.57%, which has increased by 0.18% from 1.39% last quarter.
This quarter, BlueLinx Hldgs experienced a decrease in earnings per share, which was 4.88 in Q3 and is now 2.04. BlueLinx Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Acacia Research saw a decrease in earnings per share from -0.12 in Q3 to -0.47 now. Its most recent dividend yield is at 5.79%, which has increased by 3.62% from 2.17% in the previous 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.
