Market Overview

5 Value Stocks To Watch In The Consumer Cyclical Sector

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The Meaning Behind Value Stocks

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. Yunji (NASDAQ: YJ) - P/E: 7.86
  2. Meritage Homes (NYSE: MTH) - P/E: 9.29
  3. M.D.C. Holdings (NYSE: MDC) - P/E: 9.95
  4. BBQ Hldgs (NASDAQ: BBQ) - P/E: 7.03
  5. The One Group Hospitality (NASDAQ: STKS) - P/E: 7.5

Yunji has been featured as a value stock. Yunji's Q2 EPS sits at -0.0, which has not changed since last quarter (Q1). Yunji does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Meritage Homes experienced an increase in earnings per share, which was 2.38 in Q2 and is now 2.84. Meritage Homes does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

M.D.C. Holdings has reported Q3 earnings per share at 1.49, which has increased by 13.74% compared to Q2, which was 1.31. Its most recent dividend yield is at 3.55%, which has increased by 0.27% from 3.28% in the previous quarter.

BBQ Hldgs’s earnings per share for Q3 sits at 0.05, whereas in Q2, they were at -0.21. BBQ Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, The One Group Hospitality reported earnings per share at -0.03, whereas in Q2 earnings per share sat at -0.08. The One Group Hospitality 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.

 

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