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 |
|---|---|---|
| Signet Jewelers Limited (SIG) |
$85.30 | none |
| Lear Corporation (LEA) |
$134.68 | none |
| Thor Industries (THO) |
$76.94 | none |
| Rush Enterprises (RUSHB) |
$51.82 | none |
| Purple Innovation (PRPL) |
$3.81 | none |
(IFSIA) |
$0.00 | none |
| Dorman Products (DORM) |
$131.30 | none |
| The Wendy's Company (WEN) |
$8.03 | none |
| Williams-Sonoma (WSM) |
$227.42 | none |
| Under Armour (UA) |
$5.12 | 32.4% |
| Full House Resorts (FLL) |
$2.07 | none |
| Gildan Activewear (GIL) |
$53.40 | none |
| Hilton Worldwide Holdings (HLT) |
$311.18 | none |
| LCI Industries (LCII) |
$102.60 | none |
| AutoZone (AZO) |
$2983.29 | none |
| Under Armour (UAA) |
$5.25 | 18.5% |
| Lithia Motors (LAD) |
$386.81 | none |
| Steven Madden, Ltd. (SHOO) |
$43.68 | none |
| Winnebago Industries (WGO) |
$31.03 | none |
| Camping World Holdings (CWH) |
$6.96 | none |
| Columbia Sportswear Company (COLM) |
$57.72 | none |
| Amazon.com (AMZN) |
$258.51 | 35.6% |
| Barnes & Noble Education (BNED) |
$12.72 | none |
| JAKKS Pacific (JAKK) |
$24.58 | none |
| Zipcar (ZIP) |
$4.22 | none |
| O'Reilly Automotive (ORLY) |
$87.89 | none |
| Darden Restaurants (DRI) |
$216.88 | none |
(LB ) |
$86.53 | none |
| U.S. Auto Parts Network (PRTS) |
$9.30 | none |
| Bed Bath & Beyond (BBBY) |
$4.35 | 93.4% |
| Cedar Fair, L.P. (FUN) |
$15.51 | 19.3% |
| El Pollo Loco Holdings (LOCO) |
$15.37 | none |
| Texas Roadhouse (TXRH) |
$189.56 | none |
| Patrick Industries (PATK) |
$82.84 | 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 |
| Lumber Liquidators Holdings (LL) |
$0.00 | none |
| Williams Controls (WMCO) |
$0.00 | none |
| The Bon-Ton Stores (BONT) |
$0.00 | none |
| Century Casinos (CNTY) |
$1.21 | 72.4% |
| Revolve Group (RVLV) |
$21.35 | none |
| Penn National Gaming (PENN) |
$17.07 | none |
| ProShares S&P 500 Dividend Aristocrats ETF (NOBL) |
$57.70 | none |
| Burlington Stores (BURL) |
$265.33 | none |
| Boot Barn Holdings (BOOT) |
$154.29 | none |
| P.F. Chang's China Bistro (PFCB) |
$0.00 | none |
| Starbucks Corporation (SBUX) |
$104.47 | none |
| Build-A-Bear Workshop (BBW) |
$29.43 | none |
| Yum China Holdings (YUMC) |
$43.60 | none |
(PSS) |
$0.00 | none |
| Rush Enterprises (RUSHA) |
$50.95 | none |
| Flexsteel Industries (FLXS) |
$82.16 | none |
| Best Buy Co. (BBY) |
$90.27 | none |
| Sonoco Products Company (SON) |
$51.95 | none |
| Carvana Co. (CVNA) |
$74.59 | none |
| Del Taco Restaurants (TACO) |
$10.49 | none |
| Hilton Grand Vacations (HGV) |
$42.05 | none |
| Sunstone Hotel Investors (SHO) |
$11.06 | 43.5% |
| BorgWarner (BWA) |
$67.54 | none |
| AutoNation (AN) |
$212.36 | none |
| Kandi Technologies Group (KNDI) |
$0.62 | none |
| EZCORP (EZPW) |
$33.32 | 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 |
| Kandi Technologies Group (KNDI ) |
$0.62 | 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 |
| Shake Shack (SHAK) |
$69.40 | none |
| Abercrombie & Fitch Co. (ANF) |
$149.67 | none |
| MGM Resorts International (MGM) |
$41.22 | none |
| 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