Six value stocks to watch in September

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Six value stocks to watch in September

 Six value stocks to watch in September
Image source: whiteMocca, Shutterstock

Highlights

  • Franklin Resources, Inc. (NYSE BEN) reported revenue of US$2.1 billion in Q2 2021.
  • The net income of Cigna Corporation (NYSE: CI) was US$1.5 billion or US$4.25 per share in Q2 2021.
  • Huntington Ingalls Industries, Inc. (NYSE: HII) had a gross profit of US$322 million in Q2, 2021.

Value stocks trade at lower prices than their actual value based on their fundamentals like revenue, earnings, and dividend. Common features of value stocks are low P/E rate and high dividends. However, value stocks offer a great opportunity to investors to buy stocks at lower prices.

Stocks could be undervalued for several reasons. For instance, the companies might be facing an unfavourable market situation, legal issues, or adverse publicity. However, they typically bounce back due to strong fundamentals.

Many value stocks have been trading low due to the pandemic recession. But recovery is on the horizon due to widespread vaccination and reopening of markets. Here we explore six value stocks in the market.

Source: Pixabay.

Franklin Resources, Inc. (NYSE BEN)

The global investment management company offers products and services, including investment funds and sponsored investment products (SIPs). Its stocks traded at US$32.5475 at 10.44 am ET on August 27, up 1.27 percent from the last closing price. The stock went up by 29.73 percent YTD.

The US-based investment management firm’s total revenue was US$2.1 billion in Q2, 2021 against US$1.1 billion in Q2 2020. The company reported a net income of US$438.4 million compared to US$290.4 million in Q2 last year.

The market capitalization of BEN is US$16.2 billion. The P/E ratio is 13.37, and the forward P/E one year ratio is 9.74. The EPS is US$2.42, and the annual dividend is US$1.12. The highest and lowest stock prices of the investment fund operator were US$35.94 and US$17.97. 

Also read: Five value stocks to watch amid global economic recovery

The Procter & Gamble Company (NYSE: PG)

The company sells consumer packaged goods in beauty, healthcare, homecare, baby, family care through mass merchandise, online, and retail stores. Its stocks traded at US$142.42 at the premarket on August 27. The stock prices increased by 2.29 percent YTD.

The FMCG company reported total revenue of US$18.9 billion in Q2, 2021, compared to US$17.6 billion in Q2 2020. In addition, the company reported a gross profit of US$9.1 billion against US$9 billion in Q2, 2020. The net income of the company in Q2 2021 was US$2.9 billion against US$2.8 billion in Q2 2020.

The market capitalization of PG is US$345.5 billion. The P/E ratio is 25.93, and the forward P/E one ratio is 24.02. The EPS is US$5.49, and the annual dividend is US$3.479. The highest and lowest stock prices of the US-based firm were US$146.92 and US$121.54. 

Cigna Corporation (NYSE: CI)

The health services company provides medical and dental insurance, and other related services. Its stocks traded at US$210.25 at 11.18 am ET on August 27, up 1.18 percent from the last closing price. The stock rose by 0.96 percent YTD.

The company reported revenue of US$43.1 billion in Q2, 2021. The net income was US$1.5 billion or US$4.25 per share in the quarter. The adjusted income from operations was US$1.8 billion or US$5.24 per share in Q2, 2021.

The market capitalization of Cigna is US$71.5 billion. The P/E ratio is 9.23, and the forward P/E one ratio is 10.26. The EPS is US$22.78, and the annual dividend is US$4. The highest and lowest stock prices of the healthcare company were US$272.81 and US$158.84.

Source: Pixabay.

Huntington Ingalls Industries, Inc. (NYSE HII)

The shipbuilding company provides professional services to the government. It designs, manufactures, repairs regular and nuclear-powered ships for the United States Navy. Its stocks traded at US$207.63 at 11.32 am ET on August 27, up 1.57 percent from the last close. The stock rose 29.89 percent YTD.

The total revenue of Huntington in Q2 2021 was US$2.2 billion against US$2 billion in Q2 2020. The gross profit was US$322 million against US$264 million in Q2 2020. The company reported a net income of US$129 million in Q2 2021 compared to US$53 million in Q2 2020.

The market capitalization of HII is US$8.3 billion. The P/E ratio is 11.24, and the forward P/E one ratio is 15.35. The EPS is US$18.48, and the annual dividend is US$4.56. The highest and lowest stock prices of the aerospace and defence company were US$224.13 and US$136.44.

United Parcel Service, Inc. (NYSE: UPS)

The package delivery company offers delivery services of documents, letters, and packages through air or ground. Its services are logistics, insurance, brokerage, and ocean and air freight, etc. Its stocks traded at US$193.14 at 11.42 am ET on August 27, up 0.41 percent from the last closing price. The stock prices went up by 14.72 percent YTD

The global parcel company reported revenue of US$23.4 billion in Q2, 2021, compared to US$20.4 billion in Q2 2020. The gross profit was US$18 billion in Q2 2021 against US$16.2 billion in Q2 2020. The company reported a net income of US$2.6 billion in Q2 of 2021 against US$1.7 billion in Q2 2020.

The market capitalization of UPS is US$168 billion. The P/E ratio is 27.58, and the forward P/E one ratio is 17.24. The EPS is US$7.01, and the annual dividend is US$4.08. The highest and lowest stock prices of the courier company were US$219.59 and US$154.63.

Also read: Penny wise or pound foolish? Here are 5 penny stocks to explore

Ryder System, Inc. (NYSE R)

The company offers transportation solutions like leasing, rental, maintenance of trailers, trucks, tractors. It also supplies vehicles and drivers. Its stocks traded at US$81.0209 at 11.49 am ET on August 27, up 2.52 percent from the last closing price. The stock prices went up by 30.88 percent YTD

The logistic company had revenue of US$2.3 billion in Q2 2021 compared to US$1.8 billion in Q2 2020. The company reported a net income of US$149.6 million in Q2 2021 against losses of US$74.1 million in Q2 last year. 

The market capitalization of Ryder is US$4.3 billion. The P/E ratio is 16.59, and the forward P/E one ratio is 10.57. The EPS is US$4.88, and the annual dividend is US$2.32. The highest and lowest stock prices of the ground freight company were US$89.65 and US$39.24.

Bottom line: The value stocks suffered significant losses in  2020 as the pandemic disrupted the economic activities. However, these companies have been recovering from the slowdown as the economy nurses back to health.

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