What are 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.
The following stocks are considered to be notable value stocks in the basic materials sector:
- Flexible Solutions Intl FSI - P/E: 8.21
- Tronox Holdings TROX - P/E: 9.05
- ICL Group ICL - P/E: 9.28
- Cementos Pacasmayo CPAC - P/E: 8.97
- Braskem BAK - P/E: 1.83
Flexible Solutions Intl saw an increase in earnings per share from -0.02 in Q4 to $0.12 now. This quarter, Tronox Holdings experienced an increase in earnings per share, which was $0.53 in Q4 and is now $0.6. The company's most recent dividend yield sits at 3.0%, which has increased by 0.63% from 2.37% last quarter.
ICL Group saw an increase in earnings per share from 0.26 in Q4 to $0.47 now. The company's most recent dividend yield sits at 9.29%, which has increased by 3.93% from 5.36% last quarter.
Cementos Pacasmayo has reported Q1 earnings per share at $0.15, which has increased by 66.67% compared to Q4, which was 0.09. The company's most recent dividend yield sits at 13.13%, which has increased by 9.05% from 4.08% last quarter.
Braskem saw an increase in earnings per share from 0.24 in Q4 to $1.87 now. Its most recent dividend yield is at 6.97%, which has decreased by 0.8% from 7.77% 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.
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