5 Value Stocks In The Consumer Cyclical Sector
Portfolio Pulse from Benzinga Insights
Benzinga Insights has identified five value stocks in the consumer cyclical sector based on their low price-to-earnings (P/E) multiples, suggesting they may be undervalued. The stocks are Good Times Restaurants (GTIM), M/I Homes (MHO), Penske Automotive Group (PAG), BorgWarner (BWA), and Green Brick Partners (GRBK). The article provides recent earnings per share (EPS) data and dividend yield changes for these companies, indicating their financial performance and potential attractiveness to value investors.
December 19, 2023 | 2:49 pm
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POSITIVE IMPACT
M/I Homes, with a P/E of 7.13, reported a 16.99% increase in Q3 EPS to $4.82 from $4.12 in Q2, indicating strong financial performance.
MHO's low P/E ratio and significant EPS growth could make it an attractive option for value investors, potentially driving up the stock price in the short term.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 85
NEUTRAL IMPACT
BorgWarner, with a P/E of 8.47, saw a decrease in EPS from $1.35 in Q2 to $0.98 in Q3. Dividend yield increased to 1.35% from 0.96%.
BWA's EPS decline may concern investors, but the improved dividend yield and low P/E could maintain interest, suggesting a neutral short-term impact.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
Green Brick Partners has a P/E of 8.97 with a slight decrease in Q3 EPS to $1.56 from $1.63 in Q2, indicating stable financial performance.
GRBK's minor EPS decrease is unlikely to significantly affect investor sentiment due to its stable P/E ratio, suggesting a neutral short-term impact.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 70
NEUTRAL IMPACT
Good Times Restaurants has a low P/E of 2.37, indicating potential undervaluation. Recent EPS was reported at $-0.02, down from $0.07 in Q3.
GTIM's low P/E ratio suggests undervaluation, which could attract value investors. However, the recent negative EPS could temper short-term enthusiasm.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Penske Automotive Group has a P/E of 9.49 and reported a Q3 EPS of $3.92, down from $4.41 in Q2. Dividend yield increased to 2.08% from 1.62%.
While PAG's EPS decreased, the rise in dividend yield and low P/E may balance investor sentiment, leading to a neutral short-term impact.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 75