Overview Of Value Stocks In The Consumer Cyclical Sector

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.

The following stocks are considered to be notable value stocks in the consumer cyclical sector:

1. Lucid Gr LCID - P/E: 6.82
2. Dream Finders Homes DFH - P/E: 4.06
3. China Automotive Systems CAAS - P/E: 9.27
4. Academy Sports ASO - P/E: 7.23
5. LCI Indus LCII - P/E: 4.67

Most recently, Lucid Gr reported earnings per share at $-0.4, whereas in Q2 earnings per share sat at $-0.33. Most recently, Dream Finders Homes reported earnings per share at $0.64, whereas in Q2 earnings per share sat at $0.6. Most recently, China Automotive Systems reported earnings per share at $0.24, whereas in Q2 earnings per share sat at $0.31. Academy Sports's earnings per share for Q3 sits at $1.69, whereas in Q2, they were at 2.3. Most recently, the company reported a dividend yield of 0.62%, which has decreased by 0.08% from last quarter's yield of 0.7%.

LCI Indus's earnings per share for Q3 sits at $2.4, whereas in Q2, they were at 6.06. Most recently, the company reported a dividend yield of 4.28%, which has increased by 1.12% from last quarter's yield of 3.16%.

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.