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Market Overview

5 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.

The following stocks are considered to be notable value stocks in the consumer cyclical sector:

  1. XpresSpa Group (NASDAQ:XSPA) - P/E: 0.44
  2. Group 1 Automotive (NYSE:GPI) - P/E: 9.73
  3. Meritage Homes (NYSE:MTH) - P/E: 8.17
  4. Fuwei Films (Holdings) Co (NASDAQ:FFHL) - P/E: 4.12
  5. Superior Gr of Cos (NASDAQ:SGC) - P/E: 9.14

Most recently, XpresSpa Group reported earnings per share at -0.1, whereas in Q2 earnings per share sat at -1.4. XpresSpa Group does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Group 1 Automotive saw a decrease in earnings per share from 6.97 in Q3 to 5.66 now. Most recently, the company reported a dividend yield of 0.8%, which has decreased by 0.19% from last quarter's yield of 0.99%.

Meritage Homes has reported Q4 earnings per share at 3.97, which has increased by 39.79% compared to Q3, which was 2.84. Meritage Homes does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Fuwei Films (Holdings) Co has been featured as a value stock. Fuwei Films (Holdings) Co's Q3 EPS sits at 0.61, which has not changed since last quarter (Q2). Fuwei Films (Holdings) Co 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. The company's most recent dividend yield sits at 1.59%, which has decreased by 0.27% from 1.86% 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.

 

Related Articles (FFHL + GPI)

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