5 Value Stocks In The Consumer Cyclical Sector

What Defines 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.

The following stocks are considered to be notable value stocks in the consumer cyclical sector:

1. Boyd Gaming BYD - P/E: 8.89
2. Digital Brands Group DBGI - P/E: 0.01
3. Meritage Homes MTH - P/E: 6.84
4. Oxford Industries OXM - P/E: 9.14
5. M.D.C. Holdings MDC - P/E: 9.87

Boyd Gaming's earnings per share for Q3 sits at $1.36, whereas in Q2, they were at 1.58. The company's most recent dividend yield sits at 0.95%, which has increased by 0.01% from 0.94% last quarter.

Digital Brands Group saw a decrease in earnings per share from 9.5 in Q2 to $-14.55 now. This quarter, Meritage Homes experienced an increase in earnings per share, which was $5.02 in Q2 and is now $5.98. Most recently, the company reported a dividend yield of 0.8%, which has decreased by 0.09% from last quarter's yield of 0.89%.

Oxford Industries's earnings per share for Q2 sits at $3.45, whereas in Q1, they were at 3.78. Most recently, the company reported a dividend yield of 2.57%, which has increased by 0.06% from last quarter's yield of 2.51%.

Most recently, M.D.C. Holdings reported earnings per share at $1.4, whereas in Q2 earnings per share sat at $1.24. Most recently, the company reported a dividend yield of 5.93%, which has increased by 1.2% from last quarter's yield of 4.73%.

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.