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.

Benzinga Insights has compiled a list of value stocks in the consumer cyclical sector that may be worth watching:

1. Dover Motorsports DVD - P/E: 3.38
2. Century Communities CCS - P/E: 6.63
3. Group 1 Automotive GPI - P/E: 5.73
4. Standard Motor Products SMP - P/E: 8.92
5. Cannae Holdings CNNE - P/E: 5.28

Most recently, Dover Motorsports reported earnings per share at 0.36, whereas in Q1 earnings per share sat at -0.09. The company's most recent dividend yield sits at 3.67%, which has decreased by 1.12% from 4.79% last quarter.

Most recently, Century Communities reported earnings per share at 3.47, whereas in Q1 earnings per share sat at 3.0. Its most recent dividend yield is at 0.9%, which has increased by 0.09% from 0.81% in the previous quarter.

Group 1 Automotive has reported Q2 earnings per share at 10.31, which has increased by 85.1% compared to Q1, which was 5.57. The company's most recent dividend yield sits at 0.78%, which has decreased by 0.01% from 0.79% last quarter.

Standard Motor Products's earnings per share for Q2 sits at 1.26, whereas in Q1, they were at 0.97. Most recently, the company reported a dividend yield of 2.35%, which has increased by 0.08% from last quarter's yield of 2.27%.

Cannae Holdings has reported Q2 earnings per share at 1.94, which has increased by 176.08% compared to Q1, which was -2.55. Cannae Holdings 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.