Benzinga | Jun 29, 2021 10:20AM EDT

A Look Into Consumer Cyclical Sector Value Stocks

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.

Below is a list of notable value stocks in the consumer cyclical sector:

2 Superior Gr of Cos (NASDAQ:SGC) - P/E: 7.68

4 Green Brick Partners (NASDAQ:GRBK) - P/E: 9.14

6 Fuwei Films (Holdings) (NASDAQ:FFHL) - P/E: 6.76

8 Sportsman's Warehouse (NASDAQ:SPWH) - P/E: 7.66

10 AutoNation (NYSE:AN) - P/E: 9.62

Superior Gr of Cos saw a decrease in earnings per share from 0.68 in Q4 to 0.66 now. The company's most recent dividend yield sits at 1.84%, which has increased by 0.25% from 1.59% last quarter.

Most recently, Green Brick Partners reported earnings per share at 0.51, whereas in Q4 earnings per share sat at 0.58. Green Brick Partners does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Fuwei Films (Holdings) reported earnings per share at 1.47, whereas in Q4 earnings per share sat at -0.98. Fuwei Films (Holdings) does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Sportsman's Warehouse has reported Q1 earnings per share at 0.28, which has decreased by 62.67% compared to Q4, which was 0.75. Sportsman's Warehouse does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

AutoNation's earnings per share for Q1 sits at 2.79, whereas in Q4, they were at 2.43. AutoNation 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.