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.
Below is a list of notable value stocks in the basic materials sector:
- Verso VRS - P/E: 1.52
- Kraton KRA - P/E: 4.73
- FutureFuel FF - P/E: 4.57
- Commercial Metals CMC - P/E: 9.03
- Ciner Resources CINR - P/E: 5.15
This quarter, Verso experienced a decrease in earnings per share, which was 0.17 in Q1 and is now -0.99. Verso does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Kraton saw an increase in earnings per share from 0.27 in Q1 to 0.3 now. Kraton does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, FutureFuel reported earnings per share at 0.35, whereas in Q1 earnings per share sat at 0.44. FutureFuel does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Commercial Metals experienced an increase in earnings per share, which was 0.59 in Q3 and is now 0.79. The company’s most recent dividend yield sits at 2.08%, which has decreased by 0.54% from 2.62% last quarter.
Ciner Resources saw a decrease in earnings per share from 0.34 in Q1 to -0.17 now. Most recently, the company reported a dividend yield of 12.04%, which has increased by 4.46% from last quarter’s yield of 7.58%.
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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