Overview Of Value Stocks In The Consumer Cyclical Sector
Portfolio Pulse from Benzinga Insights
The article provides an overview of value stocks in the consumer cyclical sector, highlighting companies with low P/E multiples, indicating potential undervaluation. Notable stocks mentioned include Green Brick Partners (GRBK), KB Home (KBH), Golden Entertainment (GDEN), Taylor Morrison Home (TMHC), and Legacy Housing (LEGH). The article details recent changes in earnings per share and dividend yields for these companies, suggesting that while they may be undervalued, there is a risk that they may not rebound as expected.
January 30, 2024 | 2:43 pm
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NEGATIVE IMPACT
Golden Entertainment (GDEN) has a very low P/E of 4.42 but saw a significant decrease in EPS from $0.4 to $0.06 Q/Q, which could drive negative investor perception in the short term.
The substantial drop in EPS for GDEN is likely to overshadow the low P/E ratio, resulting in a negative impact on the stock price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 85
NEGATIVE IMPACT
Green Brick Partners (GRBK) has a low P/E of 8.98 but experienced a decrease in EPS from $1.63 to $1.56 Q/Q, indicating potential short-term negative sentiment.
The decrease in EPS for GRBK may lead to negative investor sentiment in the short term, despite its low P/E ratio.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
Taylor Morrison Home (TMHC) with a P/E of 6.71 reported a decrease in EPS from $2.12 to $1.62 Q/Q, which may lead to bearish sentiment among investors.
The decline in EPS for TMHC could result in a negative short-term impact on the stock as investors may adjust their expectations.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 75
NEUTRAL IMPACT
KB Home (KBH) has a P/E of 8.63 and reported an increase in EPS from $1.8 to $1.85 Q/Q, but its dividend yield decreased from 1.79% to 1.33%, which may concern income-focused investors.
The increase in EPS is positive, but the decrease in dividend yield could offset investor sentiment, leading to a neutral short-term impact.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
Legacy Housing (LEGH) has a P/E of 8.82 and an increase in EPS from $0.6 to $0.64 Q/Q, which may be viewed positively by investors, potentially leading to a short-term uptick in the stock price.
The increase in EPS for LEGH is a positive sign that may attract investors, potentially leading to an increase in the stock price in the short term.
CONFIDENCE 65
IMPORTANCE 55
RELEVANCE 70