A Look Into Consumer Cyclical Sector Value Stocks


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


What Defines a Value Stock?

A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.

The following stocks are considered to be notable value stocks in the consumer cyclical sector:

  1. O-I Glass (NYSE:OI) - P/E: 10.0
  2. Qurate Retail (NASDAQ:QRTEA) - P/E: 4.34
  3. Academy Sports (NASDAQ:ASO) - P/E: 8.29
  4. Big 5 Sporting Goods (NASDAQ:BGFV) - P/E: 6.84
  5. Lakeland Industries (NASDAQ:LAKE) - P/E: 6.76

This quarter, O-I Glass experienced a decrease in earnings per share, which was 0.41 in Q3 and is now 0.4. O-I Glass does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Qurate Retail saw an increase in earnings per share from 0.57 in Q3 to 1.59 now. Qurate Retail does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Academy Sports saw an increase in earnings per share from 0.91 in Q3 to 1.09 now. Academy Sports does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Big 5 Sporting Goods reported earnings per share at 0.83, whereas in Q3 earnings per share sat at 1.31. Its most recent dividend yield is at 4.05%, which has decreased by 0.96% from 5.01% in the previous quarter.

Lakeland Industries's earnings per share for Q4 sits at 0.96, whereas in Q3, they were at 1.14. Lakeland Industries does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


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Posted In: EarningsNewsBZI-VS