Overview Of Value Stocks In The Consumer Cyclical Sector
What is 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 labelled as a value stock.
Benzinga Insights has compiled a list of value stocks in the consumer cyclical sector that may be worth watching:
- Qurate Retail (NASDAQ:QRTEA) - P/E: 7.6
- Hovnanian Enterprises (NYSE:HOV) - P/E: 5.93
- Cannae Holdings (NYSE:CNNE) - P/E: 2.65
- Lakeland Industries (NASDAQ:LAKE) - P/E: 7.68
- Big 5 Sporting Goods (NASDAQ:BGFV) - P/E: 7.6
This quarter, Qurate Retail experienced an increase in earnings per share, which was 0.54 in Q2 and is now 0.57. Qurate Retail does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Hovnanian Enterprises's earnings per share for Q4 sits at 5.54, whereas in Q3, they were at 2.16. Hovnanian Enterprises does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Cannae Holdings reported earnings per share at 1.44, whereas in Q2 earnings per share sat at 0.46. Cannae Holdings does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Lakeland Industries's earnings per share for Q3 sits at 1.14, whereas in Q2, they were at 1.16. Lakeland Industries does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Big 5 Sporting Goods reported earnings per share at 1.31, whereas in Q2 earnings per share sat at 0.52. The company's most recent dividend yield sits at 5.01%, which has increased by 0.65% from 4.36% last 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.
