Market Overview

A Look Into Basic Materials Sector Value Stocks

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What Defines 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. Koppers Hldgs (NYSE: KOP) - P/E: 5.45
  2. Commercial Metals (NYSE: CMC) - P/E: 8.42
  3. FutureFuel (NYSE: FF) - P/E: 4.81
  4. Westlake Chemical (NYSE: WLKP) - P/E: 9.97
  5. Verso (NYSE: VRS) - P/E: 1.6

Koppers Hldgs’s earnings per share for Q3 sits at 1.64, whereas in Q2, they were at 1.27. Koppers Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Commercial Metals reported earnings per share at 0.79, whereas in Q3 earnings per share sat at 0.59. Most recently, the company reported a dividend yield of 2.08%, which has decreased by 0.54% from last quarter’s yield of 2.62%.

FutureFuel saw a decrease in earnings per share from 0.44 in Q1 to 0.35 now. FutureFuel does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Westlake Chemical has reported Q3 earnings per share at 0.53, which has increased by 23.26% compared to Q2, which was 0.43. Most recently, the company reported a dividend yield of 10.4%, which has increased by 0.85% from last quarter’s yield of 9.55%.

Verso has reported Q2 earnings per share at -0.99, which has decreased by 682.35% compared to Q1, which was 0.17. Verso does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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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