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:
- Garrett Motion (NYSE:GTX) - P/E: 2.46
- The One Group Hospitality (NASDAQ:STKS) - P/E: 4.76
- Kingold Jewelry (NASDAQ:KGJI) - P/E: 0.93
- Cannae Holdings (NYSE:CNNE) - P/E: 2.37
- TRI Pointe Group (NYSE:TPH) - P/E: 9.32
Most recently, Garrett Motion reported earnings per share at 0.07, whereas in Q1 earnings per share sat at 0.89. Garrett Motion does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
The One Group Hospitality’s earnings per share for Q2 sits at -0.08, whereas in Q1, they were at -0.07. The One Group Hospitality does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Kingold Jewelry experienced a decrease in earnings per share, which was 0.19 in Q2 and is now -2.18. Kingold Jewelry does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Cannae Holdings experienced a decrease in earnings per share, which was 1.3 in Q1 and is now 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, TRI Pointe Group experienced an increase in earnings per share, which was 0.24 in Q1 and is now 0.51. Its most recent dividend yield is at 0.78%, which has increased by 0.09% from 0.69% 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.