A Look Into Basic Materials Sector Value Stocks

What Defines a Value Stock?

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.

Benzinga Insights has compiled a list of value stocks in the basic materials sector that may be worth watching:

1. United States Steel X - P/E: 5.83
2. Suzano SUZ - P/E: 6.09
3. Resolute Forest Products RFP - P/E: 2.67
4. Vale VALE - P/E: 4.25
5. Tronox Holdings TROX - P/E: 3.48

United States Steel's earnings per share for Q2 sits at 3.37, whereas in Q1, they were at 1.08. Its most recent dividend yield is at 0.16%, which has decreased by 0.01% from 0.17% in the previous quarter.

Suzano saw an increase in earnings per share from -0.37 in Q1 to 1.4 now. Suzano does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Resolute Forest Products's earnings per share for Q2 sits at 3.74, whereas in Q1, they were at 1.45. Resolute Forest Products does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Vale's earnings per share for Q2 sits at 1.49, whereas in Q1, they were at 1.09. Vale does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Tronox Holdings reported earnings per share at 0.61, whereas in Q1 earnings per share sat at 0.43. Its most recent dividend yield is at 2.19%, which has increased by 0.77% from 1.42% in the previous quarter.

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.