Overview Of Value Stocks In The Consumer Cyclical Sector

The Meaning Behind Value Stocks

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.

Below is a list of notable value stocks in the consumer cyclical sector:

1. Green Brick Partners GRBK - P/E: 8.98
2. KB Home KBH - P/E: 8.63
3. Golden Entertainment GDEN - P/E: 4.42
4. Taylor Morrison Home TMHC - P/E: 6.71
5. Legacy Housing LEGH - P/E: 8.82

This quarter, Green Brick Partners experienced a decrease in earnings per share, which was $1.63 in Q2 and is now $1.56. Most recently, KB Home reported earnings per share at $1.85, whereas in Q3 earnings per share sat at $1.8. Its most recent dividend yield is at 1.33%, which has decreased by 0.46% from 1.79% in the previous quarter.

Golden Entertainment saw a decrease in earnings per share from 0.4 in Q2 to $0.06 now. Taylor Morrison Home's earnings per share for Q3 sits at $1.62, whereas in Q2, they were at 2.12. Legacy Housing has reported Q3 earnings per share at $0.64, which has increased by 6.67% compared to Q2, which was 0.6.

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.