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:
- Kirkland's (NASDAQ:KIRK) - P/E: 6.26
- Thor Industries (NYSE:THO) - P/E: 4.87
- Harley-Davidson (NYSE:HOG) - P/E: 9.26
- Dixie Gr (NASDAQ:DXYN) - P/E: 9.44
- Lazydays Hldgs (NASDAQ:LAZY) - P/E: 5.27
Kirkland's's earnings per share for Q4 sits at $0.84, whereas in Q3, they were at 0.51. This quarter, Thor Industries experienced an increase in earnings per share, which was $4.34 in Q1 and is now $4.79. Most recently, the company reported a dividend yield of 2.03%, which has increased by 0.34% from last quarter's yield of 1.69%.
Harley-Davidson saw a decrease in earnings per share from 1.18 in Q3 to $0.15 now. The company's most recent dividend yield sits at 1.76%, which has increased by 0.16% from 1.6% last quarter.
Most recently, Dixie Gr reported earnings per share at $-0.26, whereas in Q3 earnings per share sat at $0.4. Lazydays Hldgs's earnings per share for Q4 sits at $0.99, whereas in Q3, they were at 1.16.
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.
