Market Overview

Overview Of Value Stocks In The Consumer Cyclical Sector

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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.

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

  1. MGM Resorts Intl (NYSE: MGM) - P/E: 9.61
  2. TRI Pointe Group (NYSE: TPH) - P/E: 8.72
  3. BBQ Hldgs (NASDAQ: BBQ) - P/E: 7.28
  4. Yunji (NASDAQ: YJ) - P/E: 9.27
  5. Group 1 Automotive (NYSE: GPI) - P/E: 9.86

MGM Resorts Intl’s earnings per share for Q3 sits at -1.08, whereas in Q2, they were at -1.52. Most recently, the company reported a dividend yield of 0.05%, which has decreased by 0.01% from last quarter’s yield of 0.06%.

TRI Pointe Group saw an increase in earnings per share from 0.51 in Q2 to 0.63 now. Its most recent dividend yield is at 0.78%, which has increased by 0.09% from 0.69% in the previous quarter.

Most recently, BBQ Hldgs reported earnings per share at 0.05, whereas in Q2 earnings per share sat at -0.21. BBQ Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Yunji looks to be undervalued. It possesses an EPS of -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.

Group 1 Automotive’s earnings per share for Q3 sits at 6.97, whereas in Q2, they were at 3.77. Its most recent dividend yield is at 0.99%, which has decreased by 0.23% from 1.22% in the previous quarter.

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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