5 Value Stocks To Watch In The Consumer Cyclical Sector

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:

1. Buckle BKE - P/E: 8.81
2. Super Group (SGHC) SGHC - P/E: 5.48
3. M.D.C. Holdings MDC - P/E: 3.61
4. International Paper IP - P/E: 6.98
5. Academy Sports ASO - P/E: 6.7

Buckle saw an increase in earnings per share from 1.01 in Q2 to $1.24 now. Super Group (SGHC)'s earnings per share for Q3 sits at $0.07, whereas in Q2, they were at 0.09. M.D.C. Holdings's earnings per share for Q3 sits at $1.98, whereas in Q2, they were at 2.59. Its most recent dividend yield is at 6.81%, which has increased by 1.32% from 5.49% in the previous quarter.

International Paper has reported Q3 earnings per share at $1.01, which has decreased by 18.55% compared to Q2, which was 1.24. Its most recent dividend yield is at 5.86%, which has increased by 1.48% from 4.38% in the previous quarter.

Most recently, Academy Sports reported earnings per share at $2.3, whereas in Q1 earnings per share sat at $1.73. Most recently, the company reported a dividend yield of 0.7%, which has decreased by 0.19% from last quarter's yield of 0.89%.

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.