Overview Of Value Stocks In The Consumer Cyclical Sector

The Meaning Behind 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.

Below is a list of notable value stocks in the consumer cyclical sector:

1. MasterCraft Boat Hldgs MCFT - P/E: 4.26
2. Bluegreen Vacations BVH - P/E: 9.28
3. Buckle BKE - P/E: 6.82
4. Dick's Sporting Goods DKS - P/E: 9.19
5. Graphic Packaging Holding GPK - P/E: 9.43

MasterCraft Boat Hldgs's earnings per share for Q4 sits at $1.37, whereas in Q3, they were at 1.36. Bluegreen Vacations saw an increase in earnings per share from 0.71 in Q1 to $1.34 now. The company's most recent dividend yield sits at 2.23%, which has decreased by 0.27% from 2.5% last quarter.

Buckle has reported Q2 earnings per share at $0.92, which has increased by 6.98% compared to Q1, which was 0.86. The company's most recent dividend yield sits at 4.11%, which has decreased by 0.16% from 4.27% last quarter.

Dick's Sporting Goods saw a decrease in earnings per share from 3.4 in Q1 to $2.82 now. The company's most recent dividend yield sits at 2.73%, which has decreased by 0.43% from 3.16% last quarter.

Graphic Packaging Holding's earnings per share for Q2 sits at $0.66, whereas in Q1, they were at 0.77. The company's most recent dividend yield sits at 1.66%, which has increased by 0.09% from 1.57% last quarter.

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.