5 Value Stocks To Watch In The Basic Materials Sector


What is 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. Intrepid Potash IPI - P/E: 4.73
  2. LSB Industries LXU - P/E: 3.29
  3. Alpha Metallurgical AMR - P/E: 1.84
  4. Tronox Holdings TROX - P/E: 3.98
  5. Sociedad Quimica Y Minera SQM - P/E: 4.9

This quarter, Intrepid Potash experienced a decrease in earnings per share, which was $0.97 in Q3 and is now $0.83. LSB Industries saw an increase in earnings per share from 0.27 in Q3 to $0.9 now. Alpha Metallurgical has reported Q4 earnings per share at $13.37, which has decreased by 5.91% compared to Q3, which was 14.21. Most recently, Tronox Holdings reported earnings per share at $0.15, whereas in Q4 earnings per share sat at $-0.17. The company's most recent dividend yield sits at 3.32%, which has decreased by 0.85% from 4.17% last quarter.

Sociedad Quimica Y Minera's earnings per share for Q4 sits at $4.03, whereas in Q3, they were at 3.85. Most recently, the company reported a dividend yield of 12.69%, which has increased by 4.48% from last quarter's yield of 8.21%.

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.

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