The Meaning Behind Value Stocks

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.

Benzinga Insights has compiled a list of value stocks in the consumer cyclical sector that may be worth watching:

Most recently, Penske Automotive Group reported earnings per share at 2.26, whereas in Q4 earnings per share sat at 2.49. The company's most recent dividend yield sits at 1.97%, which has decreased by 0.71% from 2.68% last quarter.

Tupperware Brands saw an increase in earnings per share from 0.14 in Q4 to 0.82 now. The company's most recent dividend yield sits at 7.0%, which has increased by 2.0% from 5.0% last quarter.

JOANN saw a decrease in earnings per share from 1.05 in Q4 to 0.46 now. JOANN does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Honda Motor Co experienced a decrease in earnings per share, which was 1.58 in Q3 and is now 1.17. The company's most recent dividend yield sits at 6.63%, which has increased by 3.37% from 3.26% last quarter.

This quarter, M/I Homes experienced a decrease in earnings per share, which was 2.95 in Q4 and is now 2.85. M/I Homes 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.