The basis for a future return is that you must know when stocks are cheap and when they are expensive in order to find the optimal exit. Let’s scout for some bargains within the consumer goods sector. Stocks from the sector have a total market capitalization of $73.6 trillion. The average P/E ratio is 22.7 and the dividend yield amounts to 1.9 percent.
I screened the whole sector by consumer goods stocks with cheapest price ratios. As criteria, I selected a low forward price to earnings ratio with a value of fewer than 15, a price to book ratio of less than 1 as well as a price to sales ratio of less than 1. Finally, the dividend yield must be above 2 percent. Here are the cheapest consumer goods stocks sorted by divided yield:
1. Hooker Furniture (HOFT) is acting within the home furnishings and fixtures industry. The company has a market capitalization of $108.6 million, generates revenues in an amount of $224.7 million and a net income of $3.1 million. It follows P/E ratio is 34.7 and forward price to earnings ratio 9.5, Price/Sales 0.5 and Price/Book ratio 0.9. Dividend Yield: 4.0 percent.
2. Magna International (MGA) is acting within the auto parts industry. The company has a market capitalization of $7.9 billion, generates revenues in an amount of $28.1 billion and a net income of $922.0 million. Its following P/E ratio is 8.8 and forward price to earnings ratio 7.0, Price/Sales 0.3 and Price/Book ratio 1.0. Dividend Yield: 3.0 percent.
3. Flexsteel Industries (FLXS) is acting within the home furnishings and fixtures industry. The company has a market capitalization of $93.3 million, generates revenues in an amount of $333.7 million and a net income of $10.5 million. It follows P/E ratio is 9.2 and forward price to earnings ratio 7.5, Price/Sales 0.3 and Price/Book ratio 0.7. Dividend Yield: 2.9 percent.
4. Cosan (CZZ) is acting within the confectioners industry. The company has a market capitalization of $3.1 billion, generates revenues in an amount of $10.6 billion and a net income of $821.6 million. It follows P/E ratio is 3.7 and forward price to earnings ratio 11.7, Price/Sales 0.3 and Price/Book ratio 0.9. Dividend Yield: 2.5 percent.
5. Xerox (XRX) is acting within the business equipment industry. The company has a market capitalization of $11.2 billion, generates revenues in an amount of $22.6 billion and a net income of $1.1 billion. It follows P/E ratio is 10.9 and forward price to earnings ratio 6.9, Price/Sales 0.5 and Price/Book ratio 0.9. Dividend Yield: 2.1 percent.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
