A Look Into Consumer Cyclical Sector Value Stocks

What Defines 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:

1. La-Z-Boy LZB - P/E: 7.03
2. Kingsway Financial Servs KFS - P/E: 6.86
3. Crown Crafts CRWS - P/E: 7.61
4. M/I Homes MHO - P/E: 3.79
5. Bluegreen Vacations BVH - P/E: 9.14

La-Z-Boy saw a decrease in earnings per share from 1.05 in Q2 to $0.91 now. Most recently, the company reported a dividend yield of 2.52%, which has decreased by 0.21% from last quarter's yield of 2.73%.

Most recently, Kingsway Financial Servs reported earnings per share at $-0.17, whereas in Q3 earnings per share sat at $0.1. This quarter, Crown Crafts experienced a decrease in earnings per share, which was $0.2 in Q2 and is now $0.13. The company's most recent dividend yield sits at 5.42%, which has increased by 0.05% from 5.37% last quarter.

M/I Homes's earnings per share for Q1 sits at $3.64, whereas in Q4, they were at 5.15. Bluegreen Vacations has reported Q4 earnings per share at $0.61, which has decreased by 48.74% compared to Q3, which was 1.19. Most recently, the company reported a dividend yield of 2.47%, which has decreased by 1.2% from last quarter's yield of 3.67%.

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.