Overview Of Value Stocks In The Consumer Cyclical Sector
What are Value Stocks?
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.
The following stocks are considered to be notable value stocks in the consumer cyclical sector:
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Hovnanian Enterprises (NYSE:HOV) - P/E: 4.6
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XpresSpa Group (NASDAQ:XSPA) - P/E: 0.31
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M.D.C. Holdings (NYSE:MDC) - P/E: 9.89
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Lakeland Industries (NASDAQ:LAKE) - P/E: 8.7
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Lennar (NYSE:LEN) - P/E: 9.67
Hovnanian Enterprises has reported Q4 earnings per share at 5.54, which has increased by 156.48% compared to Q3, which was 2.16. Hovnanian Enterprises does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
XpresSpa Group saw an increase in earnings per share from -1.4 in Q2 to -0.1 now. XpresSpa Group does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, M.D.C. Holdings experienced an increase in earnings per share, which was 1.31 in Q2 and is now 1.49. The company's most recent dividend yield sits at 3.55%, which has increased by 0.27% from 3.28% last quarter.
Lakeland Industries's earnings per share for Q3 sits at 1.14, whereas in Q2, they were at 1.16. Lakeland Industries does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Lennar experienced an increase in earnings per share, which was 2.12 in Q3 and is now 2.82. Most recently, the company reported a dividend yield of 1.22%, which has increased by 0.37% from last quarter's yield of 0.85%.
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.
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