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Overview Of Value Stocks In The Consumer Cyclical Sector

Understanding 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. Qurate Retail (NASDAQ:QRTEA) – P/E: 4.22
  2. Lakeland Industries (NASDAQ:LAKE) – P/E: 6.49
  3. Meritage Homes (NYSE:MTH) – P/E: 8.9
  4. Nautilus (NYSE:NLS) – P/E: 8.79
  5. M/I Homes (NYSE:MHO) – P/E: 7.44

This quarter, Qurate Retail experienced an increase in earnings per share, which was 0.57 in Q3 and is now 1.59. Qurate Retail does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Lakeland Industries experienced a decrease in earnings per share, which was 1.14 in Q3 and is now 0.96. Lakeland Industries does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.

Nautilus has reported Q4 earnings per share at 0.97, which has increased by 11.49% compared to Q3, which was 0.87. Nautilus does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, M/I Homes reported earnings per share at 2.95, whereas in Q3 earnings per share sat at 2.51. M/I Homes does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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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