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.
| Company | Current Price | Current Price Discount 10 years |
|---|---|---|
| U.S. Auto Parts Network (PRTS) |
$9.30 | none |
| Bed Bath & Beyond (BBBY) |
$4.35 | 93.4% |
| Thor Industries (THO) |
$76.94 | none |
| Rush Enterprises (RUSHB) |
$51.82 | none |
| Texas Roadhouse (TXRH) |
$189.56 | none |
| Patrick Industries (PATK) |
$82.84 | none |
| Purple Innovation (PRPL) |
$3.81 | none |
(IFSIA) |
$0.00 | none |
| Vera Bradley (VRA) |
$3.35 | 56.9% |
| Aramark (ARMK) |
$56.78 | none |
(ZZ) |
$0.00 | none |
| The Walt Disney Company (DIS) |
$105.31 | none |
| Hasbro (HAS) |
$92.53 | none |
| The Wendy's Company (WEN) |
$8.03 | none |
| Full House Resorts (FLL) |
$2.07 | none |
| Gildan Activewear (GIL) |
$53.40 | none |
| AutoZone (AZO) |
$2983.29 | none |
| Under Armour (UAA) |
$5.25 | 18.5% |
| Lumber Liquidators Holdings (LL) |
$0.00 | none |
| Lithia Motors (LAD) |
$386.81 | none |
| Williams Controls (WMCO) |
$0.00 | none |
| The Bon-Ton Stores (BONT) |
$0.00 | none |
| Century Casinos (CNTY) |
$1.26 | 71.3% |
| Winnebago Industries (WGO) |
$31.03 | none |
| Camping World Holdings (CWH) |
$6.96 | none |
| Revolve Group (RVLV) |
$21.51 | none |
| Columbia Sportswear Company (COLM) |
$57.79 | none |
| Barnes & Noble Education (BNED) |
$12.20 | none |
| ProShares S&P 500 Dividend Aristocrats ETF (NOBL) |
$57.70 | none |
| Burlington Stores (BURL) |
$265.33 | none |
| JAKKS Pacific (JAKK) |
$24.58 | none |
| Starbucks Corporation (SBUX) |
$104.47 | none |
| Zipcar (ZIP) |
$4.19 | none |
| Build-A-Bear Workshop (BBW) |
$29.07 | none |
| Yum China Holdings (YUMC) |
$43.69 | none |
| Rush Enterprises (RUSHA) |
$50.11 | none |
| Flexsteel Industries (FLXS) |
$82.16 | none |
| Best Buy Co. (BBY) |
$90.27 | none |
(LB ) |
$86.09 | none |
| Sonoco Products Company (SON) |
$51.95 | none |
| Cedar Fair, L.P. (FUN) |
$15.51 | 19.3% |
| Carvana Co. (CVNA) |
$74.59 | none |
| Del Taco Restaurants (TACO) |
$10.49 | none |
| Sunstone Hotel Investors (SHO) |
$11.06 | 43.5% |
| AutoNation (AN) |
$212.36 | none |
| El Pollo Loco Holdings (LOCO) |
$15.37 | none |
| Kandi Technologies Group (KNDI) |
$0.62 | none |
| Arcos Dorados Holdings (ARCO) |
$8.17 | none |
| Red Rock Resorts (RRR) |
$57.15 | none |
| Escalade, Incorporated (ESCA) |
$20.87 | none |
| Fiat Chrysler Automobiles N.V. (FCAU) |
$0.00 | none |
| Hooker Furniture Corporation (HOFT) |
$13.12 | 35.4% |
| Gentex Corporation (GNTX) |
$23.14 | none |
| Funko (FNKO) |
$5.68 | none |
(CRDN) |
$0.00 | none |
| Weyco Group (WEYS) |
$45.37 | none |
(TRLG) |
$0.00 | none |
| DICK'S Sporting Goods (DKS) |
$139.15 | none |
| Whirlpool Corporation (WHR) |
$39.30 | 72.0% |
| Apex Global Brands (CHKE) |
$0.00 | none |
| Polaris (PII) |
$62.52 | none |
| MGM Resorts International (MGM) |
$41.22 | none |
| Penn National Gaming (PENN) |
$17.07 | none |
| Hilton Worldwide Holdings (HLT) |
$311.18 | none |
| LCI Industries (LCII) |
$102.60 | none |
| Boot Barn Holdings (BOOT) |
$154.29 | none |
| P.F. Chang's China Bistro (PFCB) |
$0.00 | none |
| Steven Madden, Ltd. (SHOO) |
$43.68 | none |
| Signet Jewelers Limited (SIG) |
$85.30 | none |
(PSS) |
$0.00 | none |
| Amazon.com (AMZN) |
$258.51 | 35.6% |
| Hilton Grand Vacations (HGV) |
$42.05 | none |
| BorgWarner (BWA) |
$67.54 | none |
| Darden Restaurants (DRI) |
$216.88 | none |
| O'Reilly Automotive (ORLY) |
$87.89 | none |
| EZCORP (EZPW) |
$33.32 | none |
| Lear Corporation (LEA) |
$134.68 | none |
| Kandi Technologies Group (KNDI ) |
$0.62 | none |
| Dorman Products (DORM) |
$131.30 | none |
| Shake Shack (SHAK) |
$69.40 | none |
| Abercrombie & Fitch Co. (ANF) |
$149.67 | none |
| Williams-Sonoma (WSM) |
$227.42 | none |
| Under Armour (UA) |
$5.12 | 32.4% |
| McDonald's Corporation (MCD) |
$255.69 | none |
| Federal Signal Corporation (FSS) |
$119.28 | none |
| Weight Watchers International (WW) |
$18.02 | none |
| Wynn Resorts, Limited (WYNN) |
$91.54 | none |
| Canterbury Park Holding Corporation (CPHC) |
$15.96 | none |
(CBOU) |
$0.00 | none |
| Blue Bird Corporation (BLBD) |
$63.63 | none |
| The Dixie Group (DXYN) |
$0.45 | none |
| Bloomin' Brands (BLMN) |
$9.79 | none |
| Jack in the Box (JACK) |
$16.14 | none |
| American Eagle Outfitters (AEO) |
$17.39 | none |
| Modine Manufacturing Company (MOD) |
$194.66 | none |
| Baozun (BZUN) |
$2.87 | none |
| Advance Auto Parts (AAP) |
$44.18 | 35.7% |
| 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 |
| 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