5 Value Stocks To Watch In The Consumer Cyclical Sector

What are 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.

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

1. Build-A-Bear Workshop BBW - P/E: 6.14
2. M.D.C. Holdings MDC - P/E: 4.7
3. Green Brick Partners GRBK - P/E: 5.37
4. Medifast MED - P/E: 8.3
5. Flanigan'S Enterprises BDL - P/E: 8.45

Build-A-Bear Workshop has reported Q3 earnings per share at $0.51, which has increased by 34.21% compared to Q2, which was 0.38. Most recently, M.D.C. Holdings reported earnings per share at $1.08, whereas in Q3 earnings per share sat at $1.98. Its most recent dividend yield is at 5.53%, which has decreased by 1.28% from 6.81% in the previous quarter.

This quarter, Green Brick Partners experienced a decrease in earnings per share, which was $1.57 in Q3 and is now $1.18. Most recently, Medifast reported earnings per share at $3.7, whereas in Q3 earnings per share sat at $3.32. Its most recent dividend yield is at 5.47%, which has decreased by 0.03% from 5.5% in the previous quarter.

Most recently, Flanigan'S Enterprises reported earnings per share at $0.68, whereas in Q3 earnings per share sat at $0.99. Most recently, the company reported a dividend yield of 3.45%, which has increased by 1.98% from last quarter's yield of 1.47%.

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.