5 Value Stocks To Watch In The Financial Services Sector
Portfolio Pulse from Benzinga Insights
The article highlights five value stocks in the financial services sector with low price-to-earnings (P/E) multiples, suggesting they may be undervalued. The stocks mentioned are Independent Bank (IBCP), First United (FUNC), Main Street Capital (MAIN), SB Financial Group (SBFG), and First Citizens BancShares (FCNCA). The article provides recent earnings per share (EPS) data and dividend yield changes for each company, indicating their financial performance and shareholder returns.
January 04, 2024 | 2:47 pm
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POSITIVE IMPACT
First Citizens BancShares has a notably low P/E of 1.83, with a significant increase in EPS from 52.6 to $55.92 and an increased dividend yield from 0.22% to 0.5%.
The very low P/E ratio combined with significant EPS growth and an increased dividend yield could make FCNCA particularly attractive to value investors, likely leading to a positive short-term impact on the stock price.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Independent Bank has a P/E of 8.93, with recent EPS growth from $0.7 to $0.83 and a slight dividend yield decrease from 5.07% to 5.05%.
The increase in EPS and a high dividend yield, despite a slight decrease, may attract investors looking for value, potentially driving the stock price up in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
First United has a P/E of 7.9, with a marginal EPS increase from $0.66 to $0.67 and a dividend yield decrease from 4.94% to 4.41%.
The slight EPS increase is positive, but the decrease in dividend yield might offset investor enthusiasm, leading to a neutral short-term impact.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Main Street Capital has a P/E of 8.75, with a decrease in EPS from $1.12 to $1.04, but a stable high dividend yield of 7.55%.
The EPS decrease could be a concern, but the high and stable dividend yield may keep investor interest steady, likely resulting in a neutral short-term impact.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 75
NEUTRAL IMPACT
SB Financial Group has a P/E of 9.03, with a decrease in EPS from $0.45 to $0.4, but an increased dividend yield from 3.85% to 4.22%.
The decrease in EPS is negative, but the increase in dividend yield could attract income-focused investors, likely leading to a neutral short-term impact.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70