5 Value Stocks To Watch In The Basic Materials Sector

What Defines a Value Stock?

A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.

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

  1. Resolute Forest Products RFP - P/E: 3.37
  2. Valhi VHI - P/E: 9.1
  3. Constellium CSTM - P/E: 9.14
  4. Cleveland-Cliffs CLF - P/E: 5.72
  5. Koppers Hldgs KOP - P/E: 8.48

Resolute Forest Products saw a decrease in earnings per share from 3.74 in Q2 to 0.84 now. Most recently, Valhi reported earnings per share at 1.36, whereas in Q2 earnings per share sat at 0.75. The company's most recent dividend yield sits at 1.38%, which has decreased by 0.13% from 1.51% last quarter.

Most recently, Constellium reported earnings per share at 0.77, whereas in Q2 earnings per share sat at 0.88. This quarter, Cleveland-Cliffs experienced an increase in earnings per share, which was 1.46 in Q2 and is now 2.33. Most recently, the company reported a dividend yield of 3.25%, which has increased by 0.33% from last quarter's yield of 2.92%.

Koppers Hldgs's earnings per share for Q3 sits at 1.01, whereas in Q2, they were at 1.41.

These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.

Market News and Data brought to you by Benzinga APIs
Posted In: NewsBZI-VS
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!