Market Overview

Overview Of Value Stocks In The Basic Materials Sector

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The Meaning Behind Value Stocks

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.

The following stocks are considered to be notable value stocks in the basic materials sector:

  1. Turquoise Hill Resources (NYSE: TRQ) - P/E: 5.0
  2. Commercial Metals (NYSE: CMC) - P/E: 8.14
  3. FutureFuel (NYSE: FF) - P/E: 4.33
  4. Koppers Hldgs (NYSE: KOP) - P/E: 6.01
  5. Ciner Resources (NYSE: CINR) - P/E: 5.01

Most recently, Turquoise Hill Resources reported earnings per share at 0.04, whereas in Q1 earnings per share sat at 0.03. Turquoise Hill Resources does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Commercial Metals has reported Q3 earnings per share at 0.59, which has increased by 11.32% compared to Q2, which was 0.53. Most recently, the company reported a dividend yield of 2.62%, which has decreased by 0.99% from last quarter’s yield of 3.61%.

This quarter, FutureFuel experienced a decrease in earnings per share, which was 0.44 in Q1 and is now 0.35. FutureFuel does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Koppers Hldgs’s earnings per share for Q2 sits at 1.27, whereas in Q1, they were at 0.47. Koppers Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Ciner Resources experienced a decrease in earnings per share, which was 0.34 in Q1 and is now -0.17. Its most recent dividend yield is at 12.04%, which has increased by 4.46% from 7.58% in the previous quarter.

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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