Understanding 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.
Benzinga Insights has compiled a list of value stocks in the consumer cyclical sector that may be worth watching:
- Vista Outdoor (NYSE:VSTO) - P/E: 4.55
- Lithia Motors (NYSE:LAD) - P/E: 7.29
- Legacy Housing (NASDAQ:LEGH) - P/E: 8.26
- Skechers USA (NYSE:SKX) - P/E: 8.46
- Bluegreen Vacations (NYSE:BVH) - P/E: 8.71
Vista Outdoor's earnings per share for Q4 sits at $2.04, whereas in Q3, they were at 2.1. Lithia Motors has reported Q1 earnings per share at $11.96, which has increased by 5.0% compared to Q4, which was 11.39. The company's most recent dividend yield sits at 0.54%, which has increased by 0.07% from 0.47% last quarter.
Legacy Housing saw an increase in earnings per share from 0.51 in Q2 to $0.61 now. Skechers USA saw an increase in earnings per share from 0.43 in Q4 to $0.77 now. Bluegreen Vacations's earnings per share for Q1 sits at $0.76, whereas in Q4, they were at 0.59. Its most recent dividend yield is at 2.25%, which has decreased by 10.4% from 12.65% in the previous quarter.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.
