Market Overview

A Look Into Basic Materials Sector Value Stocks

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The Meaning Behind 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 labeled as a value stock.

Benzinga Insights has compiled a list of value stocks in the basic materials sector that may be worth watching:

  1. FutureFuel (NYSE: FF) - P/E: 4.59
  2. Verso (NYSE: VRS) - P/E: 1.67
  3. Koppers Hldgs (NYSE: KOP) - P/E: 5.75
  4. Boise Cascade (NYSE: BCC) - P/E: 9.72
  5. Commercial Metals (NYSE: CMC) - P/E: 8.73

FutureFuel’s earnings per share for Q3 sits at 0.16, whereas in Q2, they were at 0.35. FutureFuel does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Verso experienced an increase in earnings per share, which was -0.99 in Q2 and is now -0.92. Verso does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Koppers Hldgs saw an increase in earnings per share from 1.27 in Q2 to 1.64 now. Koppers Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Boise Cascade has reported Q3 earnings per share at 2.88, which has increased by 238.82% compared to Q2, which was 0.85. Boise Cascade does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Commercial Metals saw an increase in earnings per share from 0.59 in Q3 to 0.79 now. 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%.

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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