Understanding 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.
Benzinga Insights has compiled a list of value stocks in the consumer cyclical sector that may be worth watching:
- General Motors GM - P/E: 7.14
- Mohawk Industries MHK - P/E: 8.26
- Group 1 Automotive GPI - P/E: 4.28
- Franchise Group FRG - P/E: 5.74
- Harley-Davidson HOG - P/E: 9.34
General Motors saw a decrease in earnings per share from 2.09 in Q1 to $1.14 now. The company's most recent dividend yield sits at 4.55%, which has increased by 0.41% from 4.14% last quarter.
Most recently, Mohawk Industries reported earnings per share at $4.41, whereas in Q1 earnings per share sat at $3.78. Group 1 Automotive has reported Q2 earnings per share at $12.0, which has increased by 11.01% compared to Q1, which was 10.81. The company's most recent dividend yield sits at 0.79%, which has decreased by 0.02% from 0.81% last quarter.
Franchise Group's earnings per share for Q2 sits at $1.19, whereas in Q1, they were at 1.29. Most recently, the company reported a dividend yield of 7.28%, which has increased by 1.11% from last quarter's yield of 6.17%.
Most recently, Harley-Davidson reported earnings per share at $1.46, whereas in Q1 earnings per share sat at $1.45. The company's most recent dividend yield sits at 1.78%, which has increased by 0.02% from 1.76% last quarter.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.
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