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.
Below is a list of notable value stocks in the consumer cyclical sector:
- Meritage Homes MTH - P/E: 9.37
- Superior Gr of Cos SGC - P/E: 8.17
- Nautilus NLS - P/E: 8.45
- Live Ventures LIVE - P/E: 9.85
- Academy Sports ASO - P/E: 8.79
Meritage Homes saw a decrease in earnings per share from 3.97 in Q4 to 3.44 now. Meritage Homes does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Superior Gr of Cos has reported Q1 earnings per share at 0.66, which has decreased by 2.94% compared to Q4, which was 0.68. Most recently, the company reported a dividend yield of 1.59%, which has decreased by 0.27% from last quarter's yield of 1.86%.
Most recently, Nautilus reported earnings per share at 0.94, whereas in Q4 earnings per share sat at 0.97. Nautilus does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Live Ventures has reported Q1 earnings per share at 3.45, which has increased by 37.45% compared to Q4, which was 2.51. Live Ventures does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Academy Sports has reported Q4 earnings per share at 1.09, which has increased by 19.78% compared to Q3, which was 0.91. Academy Sports does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
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.
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