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.
The following stocks are considered to be notable value stocks in the consumer cyclical sector:
- Good Times Restaurants GTIM - P/E: 2.37
- M/I Homes MHO - P/E: 7.13
- Penske Automotive Group PAG - P/E: 9.49
- BorgWarner BWA - P/E: 8.47
- Green Brick Partners GRBK - P/E: 8.97
Most recently, Good Times Restaurants reported earnings per share at $-0.02, whereas in Q3 earnings per share sat at $0.07. M/I Homes has reported Q3 earnings per share at $4.82, which has increased by 16.99% compared to Q2, which was 4.12. Penske Automotive Group's earnings per share for Q3 sits at $3.92, whereas in Q2, they were at 4.41. Its most recent dividend yield is at 2.08%, which has increased by 0.46% from 1.62% in the previous quarter.
BorgWarner saw a decrease in earnings per share from 1.35 in Q2 to $0.98 now. The company's most recent dividend yield sits at 1.35%, which has increased by 0.39% from 0.96% last quarter.
Green Brick Partners's earnings per share for Q3 sits at $1.56, whereas in Q2, they were at 1.63.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.