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Overview Of Value Stocks In The Basic Materials Sector

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What are 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.

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: 4.67
  2. Koppers Hldgs (NYSE:KOP) - P/E: 6.33
  3. Tronox Holdings (NYSE:TROX) - P/E: 2.23
  4. Commercial Metals (NYSE:CMC) - P/E: 8.87
  5. Verso (NYSE:VRS) - P/E: 3.3

FutureFuel's earnings per share for Q3 sits at 0.16, whereas in Q2, they were 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 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.

Tronox Holdings's earnings per share for Q3 sits at 0.05, whereas in Q2, they were at 0.03. Its most recent dividend yield is at 2.62%, which has decreased by 0.61% from 3.23% in the previous quarter.

Commercial Metals has reported Q4 earnings per share at 0.79, which has increased by 33.9% compared to Q3, which was 0.59. The company's most recent dividend yield sits at 2.08%, which has decreased by 0.54% from 2.62% last quarter.

Verso's earnings per share for Q3 sits at -0.92, whereas in Q2, they were at -0.99. Most recently, the company reported a dividend yield of 4.55%, which has decreased by 93.57% from last quarter's yield of 98.12%.

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.

 

Related Articles (CMC + FF)

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Posted-In: BZI-VSEarnings News Dividends

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