5 Value Stocks In The Consumer Cyclical Sector

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.

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

1. Jakks Pacific JAKK - P/E: 2.78
2. Arhaus ARHS - P/E: 6.74
3. Thor Industries THO - P/E: 5.59
4. Caleres CAL - P/E: 4.24
5. J.Jill JILL - P/E: 7.16

Jakks Pacific's earnings per share for Q1 sits at $-0.4, whereas in Q4, they were at -1.44. Arhaus saw a decrease in earnings per share from 0.34 in Q4 to $0.25 now. Thor Industries saw a decrease in earnings per share from 2.53 in Q1 to $0.5 now. The company's most recent dividend yield sits at 2.35%, which has increased by 0.2% from 2.15% last quarter.

This quarter, Caleres experienced a decrease in earnings per share, which was $1.15 in Q3 and is now $0.65. The company's most recent dividend yield sits at 1.09%, which has decreased by 0.12% from 1.21% last quarter.

J.Jill has reported Q4 earnings per share at $0.11, which has decreased by 85.71% compared to Q3, which was 0.77.

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.