Overview Of Value Stocks In The Financial Services Sector

Author: Benzinga Insights | March 16, 2023 10:48am

What is a Value Stock?

A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.

Below is a list of notable value stocks in the financial services sector:

1. Princeton Bancorp (NASDAQ:BPRN) - P/E: 7.67
2. Wintrust Finl (NASDAQ:WTFC) - P/E: 8.9
3. Fidelity National Finl (NYSE:FNF) - P/E: 8.18
4. Enova International (NYSE:ENVA) - P/E: 6.92
5. SLM (NASDAQ:SLM) - P/E: 7.03

Most recently, Princeton Bancorp reported earnings per share at $1.13, whereas in Q3 earnings per share sat at $1.09. Its most recent dividend yield is at 3.69%, which has increased by 0.29% from 3.4% in the previous quarter.

Wintrust Finl's earnings per share for Q4 sits at $2.23, whereas in Q3, they were at 2.21. Its most recent dividend yield is at 1.8%, which has increased by 0.32% from 1.48% in the previous quarter.

Fidelity National Finl has reported Q4 earnings per share at $1.06, which has decreased by 0.93% compared to Q3, which was 1.07. Its most recent dividend yield is at 4.12%, which has decreased by 0.5% from 4.62% in the previous quarter.

This quarter, Enova International experienced an increase in earnings per share, which was $1.74 in Q3 and is now $1.76. SLM's earnings per share for Q4 sits at $-0.33, whereas in Q3, they were at 0.29. The company's most recent dividend yield sits at 2.59%, which has decreased by 0.23% from 2.82% last 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.

Posted In: BPRN ENVA FNF SLM WTFC