Benzinga | Feb 16, 2021 09:50AM EST

5 Value Stocks In The Consumer Cyclical Sector

What Defines a Value Stock?

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:

2 The Dixie Group (NASDAQ:DXYN) - P/E: 4.96

4 Fuwei Films (Holdings) Co (NASDAQ:FFHL) - P/E: 4.85

6 BBQ Hldgs (NASDAQ:BBQ) - P/E: 9.45

8 Cannae Holdings (NYSE:CNNE) - P/E: 2.41

10 Meritage Homes (NYSE:MTH) - P/E: 7.92

Most recently, The Dixie Group reported earnings per share at 0.09, whereas in Q2 earnings per share sat at -0.37. The Dixie Group 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.

BBQ Hldgs has reported Q3 earnings per share at 0.05, which has increased by 123.81% compared to Q2, which was -0.21. BBQ Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Cannae Holdings reported earnings per share at 1.44, whereas in Q2 earnings per share sat at 0.46. Cannae Holdings does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Meritage Homes experienced an increase in earnings per share, which was 2.84 in Q3 and is now 3.97. Meritage Homes does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.