What is a Value Stock?
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:
- Lazydays Hldgs LAZY - P/E: 2.9
- Goodyear Tire & Rubber GT - P/E: 3.66
- Escalade ESCA - P/E: 7.04
- Haverty Furniture Cos HVT - P/E: 5.23
- Capri Holdings CPRI - P/E: 8.98
This quarter, Lazydays Hldgs experienced an increase in earnings per share, which was $0.99 in Q4 and is now $1.17. Goodyear Tire & Rubber's earnings per share for Q1 sits at $0.37, whereas in Q4, they were at 0.57. Its most recent dividend yield is at 4.27%, which has decreased by 0.52% from 4.79% in the previous quarter.
This quarter, Escalade experienced an increase in earnings per share, which was $0.36 in Q4 and is now $0.49. Most recently, the company reported a dividend yield of 4.59%, which has increased by 0.2% from last quarter's yield of 4.39%.
This quarter, Haverty Furniture Cos experienced a decrease in earnings per share, which was $1.35 in Q4 and is now $1.11. Most recently, the company reported a dividend yield of 3.98%, which has increased by 0.29% from last quarter's yield of 3.69%.
This quarter, Capri Holdings experienced a decrease in earnings per share, which was $2.22 in Q3 and is now $1.02.
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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