Analysts Say These 4 Low P/E Consumer Cyclical Stocks Are Buys

Key Points

• DICK’S Sporting Goods, GAP, and Norwegian Cruise Line are trading at P/E ratios under 20, offering potential value plays with analyst Moderate Buy ratings and strong upside projections.
• PDD provides exposure to China’s massive e-commerce market, with a low P/E of 12.23 and a projected 35.66% upside despite recent institutional outflows.
• GAP and DKS offer added appeal for income investors, with dividend yields of 3.06% and 2.33%, respectively.

Concerns over tariffs and their effects on raw materials and consumer pricing are continuing to rock American stock markets. The S&P 500 is down 2% so far in 2025, putting the major index on track to document its first quarterly loss since June 2023.

This has pushed some analyst-favorite stocks below normal trading ranges to showcase newly lowered P/E ratios. 

Consumer cyclical stocks, which include retail stores, restaurants and other entertainment companies that do not produce essential products, are among companies hit especially hard by tariff concerns.

When markets become volatile, investors tend to move money out of consumer cyclical stocks, which often see fewer customers during times of economic stress. 

These consumer cyclical stocks are trading at P/E ratios below 20, which are often considered a positive sign for company longevity and price appreciation — and analysts say they could be buys. 

DICK'S Sporting Goods Tees Off 2025 With Earnings Surprise

The rise of athletic wear in everyday use, partnerships with major vendors, and a series of store remodels have put DICK'S Sporting Goods NYSE: DKS back on the radar of investors.

Recent market struggles have pushed shares of DKS close to their 50-day low price of $186 per share, and a 2% increase in transactions in the most recent quarter has resulted in a P/E ratio of 14.87. 

Analyst estimates for DICK’s are positive, with an aggregate Moderate Buy rating and an 18% potential price appreciation.

Part of this confidence could be coming from DICK’s most recent earnings surprise, which beat analysts' consensus estimates of $3.47 by $0.15. 

DKS can also be a strong choice for dividend investors, offering a 2.33% yield and an 11-year track record of increasing payments. 

PDD Offers Chinese E-commerce Exposure With 35% Upside

Multinational e-commerce group PDD NASDAQ: PDD offers investors exposure to the Chinese digital commerce market, which maintains an estimated annual value of $486 billion in transactions.

While PDD isn’t seeing the same share price suppression as domestic consumer shares, the company is still trading with a P/E ratio of 12.23.

Analysts rate PDD a Moderate Buy and predict a 35.66% potential upside—one of the highest on our list.

Short interest rates have fallen by more than 4% since last month, which indicates higher investor confidence. 

While institutional investments produced an overall outflow in Q4 of 2024, PDD shows signs of increasing profitability with a low price compared to earnings that could indicate a buying opportunity. 

Norwegian Sails Away With $1 Billion in Institutional Investments on New Market Entry

Norwegian Cruise Line NYSE: NCLH is having an especially hard month for share prices, with its entry into the Oceanic market dampened by overall tariff negativity.

Shares of Norwegian Cruise Line are trading about $2 above their 50-day low price of $18 per share in late March—but analyst estimates indicate that price troubles could clear once cruise season begins. 

Analysts currently give Norwegian a Moderate Buy aggregate rating, with a 41.43% potential upside in the next year.

This confidence is supported by rising analyst ratings from institutional investors like Morgan Stanley, with institutional purchasing rising to $1.2 billion in Q4 of 2024.

The company’s P/E ratio currently sits at a solid 18.77 compared to Royal Caribbean Cruises NYSE: RCL 21.05. 

GAP Offers Additional 35% Upside With Rock-Bottom P/E Ratio

Down 8.5% since the beginning of the year, GAP NYSE: GAP is facing pressure on its retail empire as e-commerce-only competitors take customers with less real estate overhead.

Despite this trend, GAP’s earnings have remained solid, with its most recent earnings report revealing that sales helped the company beat analyst consensus estimates of $0.36 by $0.18 per share. 

Falling share prices and an uncertain retail environment have pushed GAP’s P/E ratio to just 10.0, with a 35.42% potential upside.

Like DICK’s, GAP can also be an appealing choice thanks to its dividend payouts, with a respectable 3.06% dividend yield in late March.