What is a Value Stock?
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.
Benzinga Insights has compiled a list of value stocks in the consumer cyclical sector that may be worth watching:
- Lazydays Holdings LAZY - P/E: 4.75
- Citi Trends CTRN - P/E: 9.1
- Haverty Furniture Cos HVT - P/E: 6.18
- Lakeland Industries LAKE - P/E: 9.89
- H&R Block HRB - P/E: 7.36
This quarter, Lazydays Holdings experienced a decrease in earnings per share, which was 1.21 in Q2 and is now 1.16. Most recently, Citi Trends reported earnings per share at 1.03, whereas in Q2 earnings per share sat at 1.36. Most recently, the company reported a dividend yield of 1.35%, which has decreased by 0.27% from last quarter's yield of 1.62%.
Haverty Furniture Cos has reported Q3 earnings per share at 1.31, which has increased by 8.26% compared to Q2, which was 1.21. This quarter, Lakeland Industries experienced an increase in earnings per share, which was 0.31 in Q2 and is now 0.35. H&R Block's earnings per share for Q1 sits at -0.78, whereas in Q4, they were at 5.16. The company's most recent dividend yield sits at 4.46%, which has increased by 0.24% from 4.22% last 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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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