A Look Into Consumer Cyclical Sector Value Stocks

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.

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

  1. International Paper IP - P/E: 8.84
  2. Muscle Maker GRIL - P/E: 5.33
  3. Lazydays Hldgs LAZY - P/E: 2.78
  4. Kohl's KSS - P/E: 5.8
  5. WW International WW - P/E: 4.55

This quarter, International Paper experienced an increase in earnings per share, which was $0.76 in Q1 and is now $1.24. Its most recent dividend yield is at 5.86%, which has increased by 1.48% from 4.38% in the previous quarter.

Muscle Maker has reported Q2 earnings per share at $-0.06, which has increased by 14.29% compared to Q1, which was -0.07. Lazydays Hldgs saw a decrease in earnings per share from 1.17 in Q1 to $0.81 now. Most recently, Kohl's reported earnings per share at $1.11, whereas in Q1 earnings per share sat at $0.11. The company's most recent dividend yield sits at 6.36%, which has increased by 2.41% from 3.95% last quarter.

WW International has reported Q2 earnings per share at $0.4, which has increased by 766.67% compared to Q1, which was -0.06.

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.

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