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Market Overview

5 Value Stocks In The Consumer Cyclical Sector

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Understanding 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.

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

  1. Beazer Homes USA (NYSE:BZH) - P/E: 5.45
  2. Dover Motorsports (NYSE:DVD) - P/E: 3.04
  3. D.R. Horton (NYSE:DHI) - P/E: 9.68
  4. Academy Sports (NASDAQ:ASO) - P/E: 6.94
  5. Meritage Homes (NYSE:MTH) - P/E: 7.48

Most recently, Beazer Homes USA reported earnings per share at 1.22, whereas in Q2 earnings per share sat at 0.81. Beazer Homes USA does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Dover Motorsports's earnings per share for Q2 sits at 0.36, whereas in Q1, they were at -0.09. Most recently, the company reported a dividend yield of 3.67%, which has decreased by 1.12% from last quarter's yield of 4.79%.

This quarter, D.R. Horton experienced an increase in earnings per share, which was 2.53 in Q2 and is now 3.1. Its most recent dividend yield is at 0.87%, which has increased by 0.01% from 0.86% in the previous quarter.

Academy Sports saw an increase in earnings per share from 1.09 in Q4 to 1.89 now. Academy Sports does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Meritage Homes reported earnings per share at 4.73, whereas in Q1 earnings per share sat at 3.44. Meritage 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.

 

Related Articles (BZH + DVD)

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Posted-In: BZI-VSNews

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