Overview Of 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.
Below is a list of notable value stocks in the consumer cyclical sector:
- Applied UV (NASDAQ:AUVI) - P/E: 0.01
- MarineMax (NYSE:HZO) - P/E: 8.14
- Digital Brands Group (NASDAQ:DBGI) - P/E: 0.01
- Green Brick Partners (NYSE:GRBK) - P/E: 8.44
- Toll Brothers (NYSE:TOL) - P/E: 9.08
This quarter, Applied UV experienced an increase in earnings per share, which was $-19.25 in Q2 and is now $-8.0. MarineMax saw a decrease in earnings per share from 0.69 in Q4 to $0.19 now. This quarter, Digital Brands Group experienced a decrease in earnings per share, which was $9.5 in Q2 and is now $-14.55. Green Brick Partners's earnings per share for Q4 sits at $1.58, whereas in Q3, they were at 1.56. Most recently, Toll Brothers reported earnings per share at $2.25, whereas in Q4 earnings per share sat at $4.11. Its most recent dividend yield is at 0.91%, which has decreased by 0.17% from 1.08% in the previous 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.