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:
- Whirlpool (NYSE:WHR) - P/E: 7.19
- Foot Locker (NYSE:FL) - P/E: 3.29
- Liquidity Services (NASDAQ:LQDT) - P/E: 7.78
- MasterCraft Boat Hldgs (NASDAQ:MCFT) - P/E: 7.6
- Qurate Retail (NASDAQ:QRTEA) - P/E: 4.49
Whirlpool has reported Q1 earnings per share at $5.31, which has decreased by 13.52% compared to Q4, which was 6.14. The company's most recent dividend yield sits at 4.1%, which has increased by 0.52% from 3.58% last quarter.
Foot Locker has reported Q4 earnings per share at $1.67, which has decreased by 13.47% compared to Q3, which was 1.93. The company's most recent dividend yield sits at 3.86%, which has increased by 1.68% from 2.18% last quarter.
Liquidity Services has reported Q2 earnings per share at $0.17, which has decreased by 5.56% compared to Q1, which was 0.18. MasterCraft Boat Hldgs has reported Q2 earnings per share at $0.91, which has increased by 35.82% compared to Q1, which was 0.67. Qurate Retail saw a decrease in earnings per share from 0.4 in Q4 to $0.15 now.
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.
