What are 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:
- OneWater Marine ONEW - P/E: 8.28
- Green Brick Partners GRBK - P/E: 9.28
- Tupperware Brands TUP - P/E: 7.56
- America's Car-Mart CRMT - P/E: 9.82
- Iconix Brand Group ICON - P/E: 2.02
OneWater Marine has reported Q2 earnings per share at 1.83, which has increased by 157.75% compared to Q1, which was 0.71. OneWater Marine does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Green Brick Partners saw a decrease in earnings per share from 0.58 in Q4 to 0.51 now. Green Brick Partners does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Tupperware Brands reported earnings per share at 0.82, whereas in Q4 earnings per share sat at 0.14. The company's most recent dividend yield sits at 7.0%, which has increased by 2.0% from 5.0% last quarter.
America's Car-Mart saw an increase in earnings per share from 2.85 in Q3 to 6.19 now. America's Car-Mart does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Iconix Brand Group has reported Q1 earnings per share at -0.22, which has increased by 79.25% compared to Q4, which was -1.06. Iconix Brand Group 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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