The Meaning Behind Value Stocks

A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.

Below is a list of notable value stocks in the basic materials sector:

Companhia Siderurgica has reported Q2 earnings per share at 0.75, which has increased by 2.74% compared to Q1, which was 0.73. Companhia Siderurgica does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Huntsman has reported Q2 earnings per share at 0.86, which has increased by 30.3% compared to Q1, which was 0.66. Its most recent dividend yield is at 2.84%, which has increased by 0.24% from 2.6% in the previous quarter.

This quarter, Celanese experienced an increase in earnings per share, which was 3.46 in Q1 and is now 5.02. Most recently, the company reported a dividend yield of 1.76%, which has decreased by 0.03% from last quarter's yield of 1.79%.

This quarter, Kinross Gold experienced a decrease in earnings per share, which was 0.15 in Q1 and is now 0.12. Its most recent dividend yield is at 1.95%, which has increased by 0.4% from 1.55% in the previous quarter.

Centerra Gold saw a decrease in earnings per share from 0.28 in Q1 to 0.26 now. Centerra Gold does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.