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:
- FutureFuel FF - P/E: 4.56
- Koppers Hldgs KOP - P/E: 6.11
- Turquoise Hill Resources TRQ - P/E: 6.88
- Kinross Gold KGC - P/E: 8.6
- Verso VRS - P/E: 3.18
Most recently, FutureFuel reported earnings per share at 0.16, whereas in Q2 earnings per share sat at 0.35. Most recently, the company reported a dividend yield of 1.91%, which has ('', 'not changed') by 0.0% from last quarter’s yield of 1.91%.
Koppers Hldgs has reported Q3 earnings per share at 1.64, which has increased by 29.13% compared to Q2, which was 1.27. Koppers Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Turquoise Hill Resources experienced an increase in earnings per share, which was 0.04 in Q2 and is now 0.64. Turquoise Hill Resources does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Kinross Gold reported earnings per share at 0.25, whereas in Q2 earnings per share sat at 0.15. Kinross Gold does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Verso saw an increase in earnings per share from -0.99 in Q2 to -0.92 now. The company’s most recent dividend yield sits at 4.55%, which has decreased by 93.57% from 98.12% last quarter.
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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