5 Value Stocks To Watch In The Consumer Defensive Sector
Portfolio Pulse from Benzinga Insights
Benzinga Insights has identified five value stocks in the consumer defensive sector based on low P/E multiples, suggesting they may be undervalued. The stocks include Cal-Maine Foods (CALM), Ingles Markets (IMKTA), Sunlands Technology (STG), S&W Seed (SANW), and Archer-Daniels Midland (ADM). The article provides recent financial performance details such as earnings per share and dividend yields, indicating potential growth prospects for these companies.
January 12, 2024 | 2:40 pm
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NEUTRAL IMPACT
Archer-Daniels Midland has a P/E of 9.66, a decrease in EPS from $1.89 to $1.63, but an increased dividend yield from 2.12% to 2.52%.
The higher P/E ratio compared to others may suggest less undervaluation, and while the EPS has decreased, the increased dividend yield could balance the short-term impact.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 85
NEUTRAL IMPACT
S&W Seed has a P/E of 1.91 with a slight improvement in EPS from -$0.13 to -$0.11.
The low P/E ratio is attractive, but the company is still reporting negative EPS, which may limit short-term stock price appreciation.
CONFIDENCE 60
IMPORTANCE 50
RELEVANCE 75
NEUTRAL IMPACT
Sunlands Technology has an extremely low P/E of 1.3 with a decrease in EPS from $1.73 to $1.31.
The very low P/E ratio points to undervaluation, but the decrease in EPS could be a red flag for investors, leading to a neutral short-term impact.
CONFIDENCE 65
IMPORTANCE 60
RELEVANCE 80
POSITIVE IMPACT
Cal-Maine Foods has a low P/E of 5.86, recent EPS growth from $0.02 to $0.65, and an increased dividend yield from 0.05% to 0.82%.
The significant increase in EPS and dividend yield, combined with a low P/E ratio, suggests that CALM may be undervalued and could attract investor interest in the short term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Ingles Markets has a P/E of 7.79, with EPS growth from $2.54 to $2.77, but a slight decrease in dividend yield from 0.88% to 0.76%.
The EPS growth is a positive sign, although the slight decrease in dividend yield may be a concern. The low P/E ratio still indicates potential undervaluation.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 85