Consumer Cyclical Sector: Value Investing Analysis

About the Consumer Cyclical Sector

This sector includes retail stores, auto and auto-parts manufacturers, restaurants, lodging facilities, restaurants, and entertainment companies. Companies in this sector include Ford Motor Co., McDonald’s, and News Corp.

The Consumer Cyclical sector groups related businesses that share similar economic characteristics, market dynamics, and competitive forces. By analyzing stocks within this sector, you can compare companies on a more level playing field—making it easier to identify which businesses offer the best value for your investment dollars.

Understanding sector performance helps you evaluate whether individual stocks are cheap or expensive relative to their peers. A P/E ratio that looks high in one sector might be a bargain in another. This context is essential for value investors seeking to calculate realistic expected returns.

Consumer Cyclical Stocks: Value Analysis

Below are the stocks we track in the Consumer Cyclical sector, with key value investing metrics. If you have special knowledge about this sector, you have an advantage—use these metrics to find stocks that may be trading below their intrinsic value.

Discounted stocks in the index
Company Current Price Current Price Discount
10 years
P.F. Chang's China Bistro
(PFCB)
$0.00 none
Apex Global Brands
(CHKE)
$0.00 none
AutoZone
(AZO)
$2872.16 none
O'Reilly Automotive
(ORLY)
$86.11 none
Rush Enterprises
(RUSHA)
$47.97 none
Modine Manufacturing Company
(MOD)
$198.07 none

(CBOU)
$0.00 none
JAKKS Pacific
(JAKK)
$25.26 none
LCI Industries
(LCII)
$84.51 none
Funko
(FNKO)
$5.36 none
Yum China Holdings
(YUMC)
$41.12 none
Kandi Technologies Group
(KNDI)
$0.52 none
Carvana Co.
(CVNA)
$65.84 none
Winnebago Industries
(WGO)
$26.96 none
Flexsteel Industries
(FLXS)
$79.46 none

(PSS)
$0.00 none
The Bon-Ton Stores
(BONT)
$0.00 none
Rush Enterprises
(RUSHB)
$55.42 none
Columbia Sportswear Company
(COLM)
$57.05 none
Gentex Corporation
(GNTX)
$22.46 none
BorgWarner
(BWA)
$63.76 none
Hilton Grand Vacations
(HGV)
$35.59 none
DICK'S Sporting Goods
(DKS)
$121.15 none
Barnes & Noble Education
(BNED)
$10.64 none
The Walt Disney Company
(DIS)
$102.67 none
Weyco Group
(WEYS)
$44.70 none
Hasbro
(HAS)
$87.57 none
Patrick Industries
(PATK)
$68.71 none
MGM Resorts International
(MGM)
$37.81 none
Canterbury Park Holding Corporation
(CPHC)
$15.60 none
Abercrombie & Fitch Co.
(ANF)
$136.76 none
Blue Bird Corporation
(BLBD)
$60.43 none
Sunstone Hotel Investors
(SHO)
$11.09 43.3%
Williams-Sonoma
(WSM)
$224.20 none
Gildan Activewear
(GIL)
$46.87 none
McDonald's Corporation
(MCD)
$247.88 none
Amazon.com
(AMZN)
$253.71 36.8%
Cedar Fair, L.P.
(FUN)
$12.37 35.6%
El Pollo Loco Holdings
(LOCO)
$14.25 none
Arcos Dorados Holdings
(ARCO)
$7.53 none
AutoNation
(AN)
$168.76 none
Starbucks Corporation
(SBUX)
$94.90 none

(CRDN)
$0.00 none
Penn National Gaming
(PENN)
$16.13 none
Whirlpool Corporation
(WHR)
$32.64 76.8%
The Wendy's Company
(WEN)
$6.74 none
Lumber Liquidators Holdings
(LL)
$0.00 none
American Eagle Outfitters
(AEO)
$15.46 none
Bloomin' Brands
(BLMN)
$8.43 none

(LB )
$85.96 none
Zipcar
(ZIP)
$3.70 none
Steven Madden, Ltd.
(SHOO)
$42.83 none
Escalade, Incorporated
(ESCA)
$19.43 none
Lithia Motors
(LAD)
$316.27 none
Camping World Holdings
(CWH)
$5.60 none
U.S. Auto Parts Network
(PRTS)
$8.52 none
Bed Bath & Beyond
(BBBY)
$4.35 93.4%
Jack in the Box
(JACK)
$13.06 none
Hooker Furniture Corporation
(HOFT)
$13.26 34.7%

(IFSIA)
$0.00 none
Under Armour
(UA)
$4.80 36.6%
Red Rock Resorts
(RRR)
$50.91 none
Del Taco Restaurants
(TACO)
$10.45 none
Build-A-Bear Workshop
(BBW)
$24.44 none
Hilton Worldwide Holdings
(HLT)
$305.73 none
Wynn Resorts, Limited
(WYNN)
$81.68 none
Dorman Products
(DORM)
$122.44 none

(TRLG)
$0.00 none
Purple Innovation
(PRPL)
$3.19 none
Fiat Chrysler Automobiles N.V.
(FCAU)
$0.00 none
Burlington Stores
(BURL)
$237.12 none
Under Armour
(UAA)
$4.77 25.9%
Kandi Technologies Group
(KNDI )
$0.53 none
Boot Barn Holdings
(BOOT)
$122.92 none
Best Buy Co.
(BBY)
$94.82 none
Sonoco Products Company
(SON)
$48.84 none

(ZZ)
$0.00 none
Vera Bradley
(VRA)
$4.25 45.3%
Darden Restaurants
(DRI)
$209.28 none
EZCORP
(EZPW)
$30.65 none
Century Casinos
(CNTY)
$1.14 74.0%
Polaris
(PII)
$54.07 none
Thor Industries
(THO)
$67.77 none
Revolve Group
(RVLV)
$20.66 none
Texas Roadhouse
(TXRH)
$167.56 none
Full House Resorts
(FLL)
$1.90 none
ProShares S&P 500 Dividend Aristocrats ETF
(NOBL)
$55.66 none
Shake Shack
(SHAK)
$54.88 none
Lear Corporation
(LEA)
$120.64 none
Williams Controls
(WMCO)
$0.00 none
Signet Jewelers Limited
(SIG)
$100.38 none
Federal Signal Corporation
(FSS)
$113.83 none
Weight Watchers International
(WW)
$16.10 none
Aramark
(ARMK)
$56.45 none
The Dixie Group
(DXYN)
$0.47 none
Baozun
(BZUN)
$2.85 none
Advance Auto Parts
(AAP)
$42.55 38.0%
Chico's FAS
(CHS)
$0.00 59.7%
Chuy's Holdings
(CHUY)
$0.00 none
Huazhu Group Limited
(HTHT)
$42.69 none
Dillard's
(DDS)
$588.34 none
Kontoor Brands
(KTB)
$83.74 none
Planet Fitness
(PLNT)
$55.91 none
Coupang
(CPNG)
$16.35 none
Stein Mart
(SMRT)
$1.01 85.8%
Cooper-Standard Holdings
(CPS)
$29.47 8.3%
V.F. Corporation
(VFC)
$15.08 31.5%
BJ's Restaurants
(BJRI)
$68.29 none
Brady Corporation
(BRC)
$98.11 none
Ryder System
(R)
$258.24 none
Biglari Holdings
(BH)
$391.75 none
The Sherwin-Williams Company
(SHW)
$343.88 none
Kohl's Corporation
(KSS)
$19.06 77.5%
Macy's
(M)
$24.76 59.6%
Cracker Barrel Old Country Store
(CBRL)
$58.75 5.2%
Asbury Automotive Group
(ABG)
$248.26 none
Avery Dennison Corporation
(AVY)
$167.14 none
Ross Stores
(ROST)
$251.96 none
The Cato Corporation
(CATO)
$3.43 85.7%
Boyd Gaming Corporation
(BYD)
$84.32 none
The Home Depot
(HD)
$338.27 none
Builders FirstSource
(BLDR)
$75.37 none
Ralph Lauren Corporation
(RL)
$375.68 none
Urban Outfitters
(URBN)
$75.40 none
Cintas Corporation
(CTAS)
$216.53 none
Chipotle Mexican Grill
(CMG)
$34.24 75.9%
Kimberly-Clark Corporation
(KMB)
$113.21 none
Nordstrom
(JWN)
$0.00 73.2%
GameStop Corp.
(GME)
$21.84 65.5%
International Game Technology PLC
(IGT)
$0.00 none
The Gap
(GPS)
$0.00 61.4%
bebe stores, inc.
(BEBE)
$9.98 none
Compass Diversified Holdings LLC
(CODI)
$11.08 18.0%
Casey's General Stores
(CASY)
$852.86 none
CarMax
(KMX)
$59.11 none
Marriott International
(MAR)
$381.12 none
Fastenal Company
(FAST)
$47.78 none
General Motors Company
(GM)
$89.40 none
Tempur Sealy International
(TPX)
$0.00 none
The Cheesecake Factory Incorporated
(CAKE)
$105.83 none
Nautilus
(NLS)
$0.00 83.2%
Christopher & Banks Corporation
(CBK)
$35.44 none
PACCAR Inc
(PCAR)
$133.87 none

How to Invest in Consumer Cyclical Stocks

Sector-Specific Considerations

When evaluating Consumer Cyclical companies, consider these key factors:

  • Sector fundamentals: Is this sector growing, mature, or declining? Growth prospects affect reasonable earnings forecasts.
  • Economic sensitivity: How does this sector perform in different economic conditions? Understanding cyclicality helps you time purchases.
  • Competitive dynamics: Are barriers to entry high or low? Strong moats protect profits and justify premium valuations.
  • Regulatory environment: Does government policy significantly impact this sector? Regulatory changes can create risks or opportunities.
  • Capital intensity: Does the business require heavy capital investment? Capital-light businesses often generate better returns.

✓ Sector Analysis Checklist

  • Compare P/E ratios within the sector
  • Look for strong free cash flow generation
  • Assess debt levels relative to peers
  • Evaluate dividend sustainability
  • Check management track record
  • Calculate margin of safety

Common Sector Pitfalls

  • Chasing last year's hot sector
  • Ignoring sector-wide headwinds
  • Overpaying for market leaders
  • Neglecting competitive threats
  • Failing to diversify across sectors
  • Not understanding the business model