5 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.

Benzinga Insights has compiled a list of value stocks in the consumer cyclical sector that may be worth watching:

1. Caleres CAL - P/E: 6.75
2. Legacy Housing LEGH - P/E: 8.8
3. Everi Hldgs EVRI - P/E: 9.01
4. Polaris PII - P/E: 8.62
5. Green Brick Partners GRBK - P/E: 8.72

This quarter, Caleres experienced an increase in earnings per share, which was $0.98 in Q2 and is now $1.37. Most recently, the company reported a dividend yield of 1.0%, which has decreased by 0.12% from last quarter's yield of 1.12%.

This quarter, Legacy Housing experienced an increase in earnings per share, which was $0.6 in Q2 and is now $0.64. Everi Hldgs's earnings per share for Q3 sits at $0.44, whereas in Q2, they were at 0.41. Polaris saw an increase in earnings per share from 2.42 in Q2 to $2.71 now. Its most recent dividend yield is at 2.99%, which has increased by 1.09% from 1.9% in the previous quarter.

Green Brick Partners saw a decrease in earnings per share from 1.63 in Q2 to $1.56 now.

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.