5 Value Stocks 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. Virco Mfg VIRC - P/E: 4.88
2. Malibu Boats MBUU - P/E: 9.93
3. Medifast MED - P/E: 6.06
4. United Homes Gr UHG - P/E: 4.32
5. General Motors GM - P/E: 4.2

Virco Mfg has reported Q2 earnings per share at $0.95, which has increased by 1155.56% compared to Q1, which was -0.09. The company's most recent dividend yield sits at 1.4%, which has decreased by 0.06% from 1.46% last quarter.

Malibu Boats has reported Q4 earnings per share at $2.98, which has increased by 15.06% compared to Q3, which was 2.59. Medifast has reported Q2 earnings per share at $2.77, which has decreased by 24.52% compared to Q1, which was 3.67. Its most recent dividend yield is at 8.2%, which has decreased by 0.01% from 8.21% in the previous quarter.

This quarter, United Homes Gr experienced an increase in earnings per share, which was $0.07 in Q1 and is now $4.27. General Motors has reported Q2 earnings per share at $1.91, which has decreased by 13.57% compared to Q1, which was 2.21. Most recently, the company reported a dividend yield of 0.93%, which has decreased by 0.14% from last quarter's yield of 1.07%.

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.