A Look Into Consumer Cyclical Sector Value Stocks

What are Value Stocks?

A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.

Below is a list of notable value stocks in the consumer cyclical sector:

1. Camping World Holdings CWH - P/E: 7.33
2. Good Times Restaurants GTIM - P/E: 3.76
3. Whirlpool WHR - P/E: 6.59
4. Purple Innovation PRPL - P/E: 6.54
5. Sonic Automotive SAH - P/E: 8.34

Camping World Holdings has reported Q2 earnings per share at 2.51, which has increased by 79.29% compared to Q1, which was 1.4. Most recently, the company reported a dividend yield of 5.46%, which has increased by 3.25% from last quarter's yield of 2.21%.

Most recently, Good Times Restaurants reported earnings per share at 1.94, whereas in Q2 earnings per share sat at 0.09. Good Times Restaurants does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Whirlpool experienced a decrease in earnings per share, which was 7.2 in Q1 and is now 6.64. The company's most recent dividend yield sits at 2.4%, which has increased by 0.02% from 2.38% last quarter.

Purple Innovation saw a decrease in earnings per share from 0.17 in Q1 to 0.05 now. Purple Innovation does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Sonic Automotive's earnings per share for Q2 sits at 2.63, whereas in Q1, they were at 1.23. Most recently, the company reported a dividend yield of 0.95%, which has increased by 0.01% from last quarter's yield of 0.94%.

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.