A Look Into Consumer Cyclical Sector Value Stocks

Author: Benzinga Insights | November 07, 2023 10:43am

Understanding 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.

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

1. Golden Entertainment (NASDAQ:GDEN) - P/E: 4.15
2. Polaris (NYSE:PII) - P/E: 8.9
3. Group 1 Automotive (NYSE:GPI) - P/E: 6.0
4. Good Times Restaurants (NASDAQ:GTIM) - P/E: 3.19
5. Dream Finders Homes (NYSE:DFH) - P/E: 8.51

Golden Entertainment's earnings per share for Q3 sits at $0.06, whereas in Q2, they were at 0.4. Polaris has reported Q3 earnings per share at $2.71, which has increased by 11.98% compared to Q2, which was 2.42. Its most recent dividend yield is at 2.99%, which has increased by 1.09% from 1.9% in the previous quarter.

Group 1 Automotive has reported Q3 earnings per share at $12.07, which has increased by 2.9% compared to Q2, which was 11.73. The company's most recent dividend yield sits at 0.69%, which has decreased by 0.14% from 0.83% last quarter.

Good Times Restaurants saw a decrease in earnings per share from 0.89 in Q2 to $0.07 now. Dream Finders Homes's earnings per share for Q3 sits at $0.75, whereas in Q2, they were at 0.65.

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.

Posted In: DFH GDEN GPI GTIM PII