5 Value Stocks To Watch In The Consumer Cyclical Sector

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:

1. Hovnanian Enterprises HOV - P/E: 1.32
2. Sonic Automotive SAH - P/E: 7.68
3. Qurate Retail QRTEA - P/E: 3.27
4. O-I Glass OI - P/E: 7.63
5. Group 1 Automotive GPI - P/E: 5.86

This quarter, Hovnanian Enterprises experienced an increase in earnings per share, which was 2.75 in Q1 and is now 4.87. Hovnanian Enterprises does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Sonic Automotive has reported Q2 earnings per share at 2.63, which has increased by 113.82% compared to Q1, which was 1.23. Its most recent dividend yield is at 0.95%, which has increased by 0.01% from 0.94% in the previous quarter.

Qurate Retail saw an increase in earnings per share from 0.48 in Q1 to 0.54 now. Qurate Retail does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, O-I Glass reported earnings per share at 0.54, whereas in Q1 earnings per share sat at 0.35. Most recently, the company reported a dividend yield of 1.54%, which has decreased by 0.33% from last quarter's yield of 1.87%.

Most recently, Group 1 Automotive reported earnings per share at 10.31, whereas in Q1 earnings per share sat at 5.57. Most recently, the company reported a dividend yield of 0.78%, which has decreased by 0.01% from last quarter's yield of 0.79%.

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.