What Defines a Value Stock?
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:
- M/I Homes (NYSE:MHO) – P/E: 7.56
- Tri Pointe Homes (NYSE:TPH) – P/E: 9.82
- Nautilus (NYSE:NLS) – P/E: 8.59
- Fuwei Films (Holdings) Co (NASDAQ:FFHL) – P/E: 4.3
- Qurate Retail (NASDAQ:QRTEA) – P/E: 4.08
M/I Homes saw an increase in earnings per share from 2.51 in Q3 to 2.95 now. M/I Homes does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Tri Pointe Homes has reported Q4 earnings per share at 0.92, which has increased by 46.03% compared to Q3, which was 0.63. Most recently, the company reported a dividend yield of 0.78%, which has increased by 0.09% from last quarter’s yield of 0.69%.
This quarter, Nautilus experienced an increase in earnings per share, which was 0.87 in Q3 and is now 0.97. Nautilus does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Fuwei Films (Holdings) Co looks to be undervalued. It possesses an EPS of 0.61, which has not changed since last quarter (Q2). Fuwei Films (Holdings) Co does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Qurate Retail experienced an increase in earnings per share, which was 0.57 in Q3 and is now 1.59. Qurate Retail does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
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.
