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:
- Qurate Retail QRTEB - P/E: 2.76
- Sally Beauty Holdings SBH - P/E: 9.46
- KB Home KBH - P/E: 8.4
- Group 1 Automotive GPI - P/E: 6.33
- Live Ventures LIVE - P/E: 3.9
Qurate Retail has reported Q3 earnings per share at 0.3, which has decreased by 44.44% compared to Q2, which was 0.54. Sally Beauty Holdings has reported Q4 earnings per share at 0.64, which has decreased by 5.88% compared to Q3, which was 0.68. Most recently, KB Home reported earnings per share at 1.65, whereas in Q2 earnings per share sat at 1.5. The company's most recent dividend yield sits at 1.54%, which has increased by 0.07% from 1.47% last quarter.
This quarter, Group 1 Automotive experienced a decrease in earnings per share, which was 10.31 in Q2 and is now 9.62. The company's most recent dividend yield sits at 0.66%, which has decreased by 0.12% from 0.78% last quarter.
Live Ventures's earnings per share for Q3 sits at 3.01, whereas in Q2, they were at 2.1. Live Ventures does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
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.
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