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.
Benzinga Insights has compiled a list of value stocks in the consumer cyclical sector that may be worth watching:
- Meritage Homes (NYSE:MTH) – P/E: 7.46
- Hovnanian Enterprises (NYSE:HOV) – P/E: 8.24
- Big 5 Sporting Goods (NASDAQ:BGFV) – P/E: 9.13
- TravelCenters Of America (NASDAQ:TA) – P/E: 6.83
- PulteGroup (NYSE:PHM) – P/E: 8.77
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.
Hovnanian Enterprises has reported Q4 earnings per share at 5.54, which has increased by 156.48% compared to Q3, which was 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, Big 5 Sporting Goods reported earnings per share at 1.31, whereas in Q2 earnings per share sat at 0.52. Most recently, the company reported a dividend yield of 5.01%, which has increased by 0.65% from last quarter’s yield of 4.36%.
TravelCenters Of America’s earnings per share for Q3 sits at 0.65, whereas in Q2, they were at 0.59. TravelCenters Of America does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
PulteGroup’s earnings per share for Q4 sits at 1.49, whereas in Q3, they were at 1.34. Its most recent dividend yield is at 1.22%, which has decreased by 0.13% from 1.35% in the previous quarter.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.