What defines a value stock?
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 financial services sector:
- Secure Blackstone BXSL – PER: 10.0
- Capital One Financial COF – PER: 4.39
- Finl Medallion MFIN – PER: 3.23
- Historic Bancorp LARK – PER: 9.09
- Brookline Bancorp BRKL – PER: 8.94
Blackstone Secured saw its earnings per share fall from 0.61 in the first quarter to $0.62 currently. This quarter, Capital One Financial saw lower earnings per share, which was $5.62 in the first quarter and is now $4.96. Most recently, the company announced 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 first quarter earnings per share were $0.39. The company’s most recent dividend yield sits at 5.3%, up 1.21% from 4.09% last quarter.
Landmark Bancorp’s earnings per share for the second quarter came in at $0.61, down from 0.62 in the first quarter. The company’s most recent dividend yield sits at 3.31%, up 0.07% from 3.24% last quarter.
Most recently, Brookline Bancorp reported earnings per share of $0.33, while first-quarter earnings per share were $0.32. Its most recent dividend yield is 3.78%, up 0.21% from 3.57% in the prior quarter.
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.