A Look Into Basic Materials Sector Value Stocks

Understanding 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.

The following stocks are considered to be notable value stocks in the basic materials sector:

1. Commercial Metals CMC - P/E: 9.78
2. Koppers Hldgs KOP - P/E: 7.89
3. Tronox Holdings TROX - P/E: 2.57
4. Kinross Gold KGC - P/E: 8.39
5. Turquoise Hill Resources TRQ - P/E: 6.34

Commercial Metals's earnings per share for Q1 sits at 0.58, whereas in Q4, they were at 0.79. The company's most recent dividend yield sits at 2.04%, which has decreased by 0.04% from 2.08% last quarter.

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.

This quarter, Tronox Holdings experienced an increase in earnings per share, which was 0.03 in Q2 and is now 0.05. Most recently, the company reported a dividend yield of 2.62%, which has decreased by 0.61% from last quarter's yield of 3.23%.

Kinross Gold's earnings per share for Q3 sits at 0.25, whereas in Q2, they were at 0.15. Kinross Gold does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Turquoise Hill Resources reported earnings per share at 0.64, whereas in Q2 earnings per share sat at 0.04. Turquoise Hill Resources 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.