As growth stocks continue to dominate the market, there are some value stocks that may be worth considering. Five stocks, all part of the Russell 2000 index, stand out as value stocks due to their low price-earnings ratios, consistent earnings, and commitment to paying dividends to shareholders. These stocks may appeal to investors looking for opportunities in the under-valued small-cap sector.
One of the value stocks to consider is Eastern Bancshares, a financial services company based in Boston, Massachusetts. With a market capitalization of $2.22 billion, the company’s earnings have seen a 17.40% increase this year and a 19.60% increase over the past 5 years. Eastern Bancshares trades at a 25% discount from its book value and has a price-earnings ratio of 8. The company also pays a dividend of 3.33%.
Another value stock to explore is Essent Group, a Bermuda-based insurer with a market capitalization of $5.73 billion. Despite a modest 1.36% increase in earnings this year, the company has seen a 6.38% growth in EPS over the past 5 years. With a price-earnings ratio of 8 and trading at 1.12 times book value, Essent Group offers investors a 1.92% dividend.
Riley Exploration Permian, an oil and gas exploration company based in Oklahoma City, Oklahoma, is another value stock worth considering. With a market capitalization of $627 million, the company trades on the AMEX at 1.42 times book value and has a price-earnings ratio of 5.25. Earnings for Riley Exploration have seen a significant 39% increase this year and a 25% increase over the past 5 years. The company also pays a dividend of 4.78%.
SM Energy, an oil and gas exploration company founded in 1908, has a market capitalization of $5.87 billion. Earnings for the company have increased by 1.12% this year and by 8.90% over the past 5 years. With a debt load that amounts to about half of shareholder equity, SM Energy offers investors a 1.24% dividend. The short float of 9.23% suggests potential for a rally if shorts are forced to cover.
Select Water Solutions, a company involved in water services, water infrastructure, and oilfield services based in Houston, Texas, is also a value stock to consider. With a market capitalization of $937 million, the company has seen earnings increase by .42% this year and by 15.95% over the past 5 years. Select Water Solutions has a debt-to-equity ratio of .09 and pays a dividend of 2.39%.
Overall, these 5 value stocks offer investors an opportunity to capitalize on under-valued small-cap equities. With low price-earnings ratios, consistent earnings growth, and dividend payments, these stocks may be worth considering for investors seeking opportunities outside of the popular growth stocks in the market.
