Overview Of Value Stocks In The Basic Materials Sector

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.

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

1. Verso VRS - P/E: 3.43
2. Tronox Holdings TROX - P/E: 2.91
3. Kinross Gold KGC - P/E: 6.87
4. FutureFuel FF - P/E: 6.8
5. Koppers Hldgs KOP - P/E: 8.07

Verso has reported Q3 earnings per share at -0.92, which has increased by 7.07% compared to Q2, which was -0.99. The company's most recent dividend yield sits at 3.26%, which has decreased by 1.29% from 4.55% last quarter.

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.

Most recently, Kinross Gold reported earnings per share at 0.27, whereas in Q3 earnings per share sat at 0.25. Most recently, the company reported a dividend yield of 1.63%, which has increased by 0.17% from last quarter's yield of 1.46%.

Most recently, FutureFuel reported earnings per share at 0.16, whereas in Q2 earnings per share sat at 0.35. The company's most recent dividend yield sits at 1.91%, which has ('', 'not changed') by 0.0% from 1.91% last quarter.

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.

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.