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. Intrepid Potash IPI - P/E: 3.55
  2. Braskem BAK - P/E: 2.77
  3. Companhia Siderurgica SID - P/E: 2.58
  4. Reliance Steel & Aluminum RS - P/E: 8.7
  5. Teck Resources TECK - P/E: 9.4

Intrepid Potash has reported Q4 earnings per share at $0.6, which has increased by 100.0% compared to Q3, which was 0.3. This quarter, Braskem experienced a decrease in earnings per share, which was $1.7 in Q3 and is now $0.24. Its most recent dividend yield is at 7.77%, which has increased by 2.39% from 5.38% in the previous quarter.

This quarter, Companhia Siderurgica experienced a decrease in earnings per share, which was $0.75 in Q2 and is now $0.16. Reliance Steel & Aluminum's earnings per share for Q4 sits at $6.83, whereas in Q3, they were at 6.15. The company's most recent dividend yield sits at 2.16%, which has increased by 0.36% from 1.8% last quarter.

Teck Resources has reported Q4 earnings per share at $2.01, which has increased by 34.9% compared to Q3, which was 1.49.

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.

Posted In: BZI-VSNews