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What are value stocks?
A value stock is traditionally defined in terms of how investors in the market assess the future growth prospects of that company. Low P/E multiples are good basic indicators that the company is undervalued and most likely qualifies as a value stock.
Below is a list of notable value stocks in the consumer defensive sector:
- RLX Technology RLX – PER: 4.21
- Pride of the pilgrims CPC – PER: 8.93
- China Online Education Gr Center of Excellence – PER: 3.39
- Industries Bachoco SAB IBA – PER: 7.33
- DAVIDsTEA DTEA – PER: 0.67
This quarter, RLX Technology saw lower earnings per share, which was $0.06 in Q4 and is now $0.04. Pilgrims Pride’s earnings per share for the second quarter came in at $1.54, down from 1.18 in the first quarter. This quarter, China Online Education Gr saw an increase in earnings per share, which was -$0.94 in the first quarter and is now -$0.67. Earnings per share for Industrias Bachoco SAB for the second quarter stood at $2.94, while in the first quarter it was 2.17. The company’s most recent dividend yield sits at 2.28%, up 0.23% from 2.05% last quarter.
DAVIDsTEA saw its earnings per share fall from 0.06 in Q4 to -$0.04 currently.
Importance: A valuable security may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence never materializes.
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