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.
Benzinga Insights has compiled a list of value stocks in the consumer cyclical sector that may be worth watching:
- Harley-Davidson (NYSE:HOG) – P/E: 8.83
- ODP (NASDAQ:ODP) – P/E: 9.87
- WestRock (NYSE:WRK) – P/E: 9.17
- Rocky Brands (NASDAQ:RCKY) – P/E: 7.43
- Steven Madden (NASDAQ:SHOO) – P/E: 8.63
Harley-Davidson saw an increase in earnings per share from 1.45 in Q1 to $1.46 now. The company’s most recent dividend yield sits at 1.59%, which has decreased by 0.19% from 1.78% last quarter.
ODP saw a decrease in earnings per share from 1.27 in Q1 to $0.79 now. Its most recent dividend yield is at 4.31%, which has decreased by 0.26% from 4.57% in the previous quarter.
WestRock saw an increase in earnings per share from 1.17 in Q2 to $1.54 now. Most recently, the company reported a dividend yield of 2.37%, which has increased by 0.37% from last quarter’s yield of 2.0%.
Rocky Brands saw a decrease in earnings per share from 1.1 in Q1 to $0.34 now. Most recently, the company reported a dividend yield of 1.98%, which has increased by 0.3% from last quarter’s yield of 1.68%.
Steven Madden has reported Q2 earnings per share at $0.63, which has decreased by 31.52% compared to Q1, which was 0.92. Most recently, the company reported a dividend yield of 2.51%, which has increased by 0.52% from last quarter’s yield of 1.99%.
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.
