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:
- TravelCenters Of America (NASDAQ:TA) - P/E: 5.89
- Acorn Intl (NYSE:ATV) - P/E: 5.15
- BBQ Hldgs (NASDAQ:BBQ) - P/E: 9.15
- XpresSpa Group (NASDAQ:XSPA) - P/E: 0.61
- Dover Motorsports (NYSE:DVD) - P/E: 9.86
Most recently, TravelCenters Of America reported earnings per share at 0.65, whereas in Q2 earnings per share sat at 0.59. TravelCenters Of America does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Acorn Intl experienced a decrease in earnings per share, which was 1.07 in Q1 and is now -0.19. Its most recent dividend yield is at 5.82%, which has increased by 5.53% from 0.29% in the previous quarter.
Most recently, BBQ Hldgs reported earnings per share at 0.05, whereas in Q2 earnings per share sat at -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, XpresSpa Group reported earnings per share at -0.1, whereas in Q2 earnings per share sat at -1.4. XpresSpa Group does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Dover Motorsports's earnings per share for Q4 sits at -0.05, whereas in Q3, they were at 0.36. Its most recent dividend yield is at 4.79%, which has decreased by 0.47% from 5.26% in the previous quarter.
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.
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