What are the top 25 (22 this month) Undervalued Stocks (5 by 5 market cap classes) in the Consumer Cyclicals Sector? I have used the analysis tools on the website stockcalc.com to generate the content of this blog post. Have a look down the Welcome page for some of the free lists and reports available www.stockcalc.com/Welcome as well.
Or start your StockCalc 30 Day Free Trial
Undervalued Stocks – Consumer Cyclicals Sector
Today our focus is the Consumer Cyclicals sector and we are looking at companies that are undervalued based on our Weighted Average Valuation (WAV) calculation which we do for the 8000 stocks each night in the StockCalc database. The Consumer Cyclicals sector includes a variety of industries such as advertising, autos, travel and leisure, entertainment and retail. These companies tend to be very sensitive to economic cycles.
We generate our Weighted Average Valuation (WAV) from 5 models and Analyst consensus. Overview of the models used: Discounted Cash Flow (DCF value) is a valuation technique where cash flow projections are discounted back to the present to calculate value per share. A Comparables model values the company on the basis of ratios from selected comparable companies. We actually do 3 types of comparables models. An Adjusted Book Value (ABV) is calculated by multiplying book value per share by its historical Price to Book ratio. If we have Analyst coverage we look at the consensus target price.
Today’s Data – Consumer Cyclicals
In the table below we can see the close price (Jan 8th 2021) and valuation for these companies along with the ratio of valuation to price as well as their market cap class and average trading volume.
Symbol | Company Name | Close Price($) | Valuation ($) | Value/ Price | Class | Average Volume |
---|---|---|---|---|---|---|
VIPS-N | Vipshop Holdings | 15.13 | 23.45 | 1.55 | Large Cap | 4638125 |
EXPE-Q | Expedia Group | 108.62 | 139.26 | 1.28 | Large Cap | 1990003 |
QSR-T | Restaurant Brands Intl | 81.28 | 98.32 | 1.21 | Large Cap | 987770 |
WRK-N | WestRock | 41.74 | 48.33 | 1.16 | Large Cap | 3156442 |
ARMK-N | Aramark | 44.27 | 51.01 | 1.15 | Large Cap | 1239589 |
QRTEA-Q | Qurate Retail | 7.95 | 16.00 | 2.01 | Mid Cap | 3389376 |
SIX-N | Six Flags Entertainment | 43.56 | 63.00 | 1.45 | Mid Cap | 1876296 |
GIL-N | Gildan Activewear | 29.53 | 38.31 | 1.30 | Mid Cap | 619339 |
BERY-N | Berry Global Group | 44.77 | 55.71 | 1.24 | Mid Cap | 1535864 |
WYND-N | Wyndham Destinations | 51.12 | 59.50 | 1.16 | Mid Cap | 453248 |
CHS-N | Chico’s FAS | 3.76 | 7.91 | 2.10 | Small Cap | 2234503 |
RGS-N | Regis | 16.55 | 33.00 | 1.99 | Small Cap | 277526 |
CONN-Q | Conn’s | 11.01 | 21.75 | 1.98 | Small Cap | 1032243 |
EXPR-N | Express | 5.09 | 10.00 | 1.96 | Small Cap | 1834662 |
MOD-N | Modine Manufacturing | 7.46 | 14.48 | 1.94 | Small Cap | 204739 |
JILL-N | J.Jill | 1.26 | 2.81 | 2.23 | Micro Cap | 192705 |
HOV-N | Hovnanian Enterprises | 20.84 | 42.71 | 2.05 | Micro Cap | 161152 |
CXDC-Q | China XD Plastics Co | 1.99 | 4.08 | 2.05 | Micro Cap | 78384 |
PRTY-N | Party City Holdco | 2.53 | 5.00 | 1.98 | Micro Cap | 2868379 |
FRGI-Q | Fiesta Restaurant Gr | 10.54 | 18.29 | 1.74 | Micro Cap | 195956 |
BUS-X | Grande West | 0.46 | 0.60 | 1.32 | Nano Cap | 100501 |
BBQ-Q | BBQ Hldgs | 4.36 | 4.51 | 1.04 | Nano Cap | 79193 |
N-NYSE, Q-Nasdaq, A-American, T-Toronto, X-Toronto Venture
Lets look at a few companies…
Lets look at a couple of the companies on this list to get a better understanding of them.
Expedia Group
https://www.expediagroup.com
Expedia Group Inc is an online travel company. It offers holiday packages, rental cars, cruises, as well as destination services and activities. The Core OTA segment generates maximum revenue for the company.
Six Flags Entertainment
https://www.sixflags.com
Six Flags Entertainment Corp is the owner and operator of regional theme and water parks in the United States, Mexico and Canada. It offers thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues and retail outlet
Hovnanian Enterprises
https://www.khov.com
Hovnanian Enterprises Inc is an American construction company. It designs, constructs, markets and sells single-family detached homes, attached townhomes and condominiums, urban infill and active lifestyle homes in planned residential developments.