A Look Into Consumer Cyclical Sector Value Stocks

The Meaning Behind 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. Meritage Homes MTH - P/E: 8.22
2. BBQ Hldgs BBQ - P/E: 9.92
3. Qurate Retail QRTEA - P/E: 4.45
4. Lakeland Industries LAKE - P/E: 8.38
5. Superior Gr of Cos SGC - P/E: 9.82

Meritage Homes's earnings per share for Q4 sits at 3.97, whereas in Q3, they were at 2.84. Meritage Homes does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.

Qurate Retail has reported Q4 earnings per share at 1.59, which has increased by 178.95% compared to Q3, which was 0.57. Qurate Retail does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Lakeland Industries has reported Q3 earnings per share at 1.14, which has decreased by 1.72% compared to Q2, which was 1.16. Lakeland Industries does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Superior Gr of Cos experienced an increase in earnings per share, which was 0.63 in Q3 and is now 0.68. Its most recent dividend yield is at 1.59%, which has decreased by 0.27% from 1.86% 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.