What Defines a Value Stock?

A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company’s future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labeled as a value stock.

Benzinga Insights has compiled a list of value stocks in the consumer cyclical sector that may be worth watching:

1. Century Communities CCS - P/E: 8.24
2. M/I Homes MHO - P/E: 7.28
3. Green Brick Partners GRBK - P/E: 9.19
4. MGM Resorts Intl MGM - P/E: 5.8
5. Jakks Pacific JAKK - P/E: 0.06

Century Communities saw an increase in earnings per share from 0.8 in Q1 to 1.21 now. Century Communities does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, M/I Homes reported earnings per share at 1.89, whereas in Q1 earnings per share sat at 1.09. M/I Homes does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Green Brick Partners reported earnings per share at 0.66, whereas in Q1 earnings per share sat at 0.31. Green Brick Partners does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

MGM Resorts Intl’s earnings per share for Q2 sits at -1.52, whereas in Q1, they were at -0.45. Its most recent dividend yield is at 0.06%, which has ('', 'not changed') by 0.0% from 0.06% in the previous quarter.

Most recently, Jakks Pacific reported earnings per share at -4.38, whereas in Q1 earnings per share sat at -0.72. Jakks Pacific does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.