5 Value Stocks To Watch In The Consumer Cyclical Sector

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. Live Ventures LIVE - P/E: 6.61
2. Academy Sports ASO - P/E: 8.88
3. Taylor Morrison Home TMHC - P/E: 9.9
4. OneWater Marine ONEW - P/E: 9.39
5. Nautilus NLS - P/E: 9.1

This quarter, Live Ventures experienced a decrease in earnings per share, which was 3.45 in Q1 and is now 2.1. Live Ventures does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Academy Sports reported earnings per share at 1.09, whereas in Q3 earnings per share sat at 0.91. Academy Sports does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Taylor Morrison Home saw a decrease in earnings per share from 0.87 in Q4 to 0.75 now. Taylor Morrison Home does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

OneWater Marine's earnings per share for Q2 sits at 1.83, whereas in Q1, they were at 0.71. OneWater Marine does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Nautilus's earnings per share for Q1 sits at 0.94, whereas in Q4, they were at 0.97. Nautilus 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.