5 Value Stocks In The Financial Services Sector

Understanding Value Stocks

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.

The following stocks are considered to be notable value stocks in the financial services sector:

  1. Rocket Companies RKT - P/E: 5.92
  2. SouthState SSB - P/E: 9.14
  3. Umpqua Holdings UMPQ - P/E: 8.47
  4. UBS Group UBS - P/E: 7.61
  5. TCG BDC CGBD - P/E: 5.43

Most recently, Rocket Companies reported earnings per share at 0.46, whereas in Q1 earnings per share sat at 0.89. Rocket Companies does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

SouthState saw a decrease in earnings per share from 2.17 in Q1 to 1.87 now. Most recently, the company reported a dividend yield of 2.81%, which has increased by 0.57% from last quarter's yield of 2.24%.

Most recently, Umpqua Holdings reported earnings per share at 0.53, whereas in Q1 earnings per share sat at 0.49. Most recently, the company reported a dividend yield of 4.23%, which has decreased by 0.13% from last quarter's yield of 4.36%.

UBS Group's earnings per share for Q2 sits at 0.55, whereas in Q1, they were at 0.49. UBS Group does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, TCG BDC experienced an increase in earnings per share, which was 0.36 in Q1 and is now 0.38. TCG BDC does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.

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