5 Value Stocks In The Consumer Cyclical Sector

Understanding 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.

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

1. Buckle BKE - P/E: 9.24
2. Cannae Holdings CNNE - P/E: 5.01
3. PulteGroup PHM - P/E: 7.67
4. Purple Innovation PRPL - P/E: 7.09
5. Escalade ESCA - P/E: 8.9

Buckle's earnings per share for Q2 sits at 1.04, whereas in Q1, they were at 1.16. Its most recent dividend yield is at 3.38%, which has increased by 0.04% from 3.34% in the previous quarter.

Cannae Holdings's earnings per share for Q2 sits at 1.94, whereas in Q1, they were at -2.55. Cannae Holdings does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

PulteGroup's earnings per share for Q2 sits at 1.72, whereas in Q1, they were at 1.28. The company's most recent dividend yield sits at 1.06%, which has increased by 0.12% from 0.94% last quarter.

This quarter, Purple Innovation experienced a decrease in earnings per share, which was 0.17 in Q1 and is now 0.05. Purple Innovation does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Escalade experienced an increase in earnings per share, which was 0.39 in Q1 and is now 0.58. Its most recent dividend yield is at 2.43%, which has decreased by 0.21% from 2.64% in the previous quarter.

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.