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Market Overview

5 Value Stocks In The Basic Materials Sector

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Understanding 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 labelled as a value stock.

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

  1. Koppers Hldgs (NYSE:KOP) - P/E: 7.71
  2. Tronox Holdings (NYSE:TROX) - P/E: 2.86
  3. Celanese (NYSE:CE) - P/E: 7.8
  4. FutureFuel (NYSE:FF) - P/E: 5.73
  5. Kinross Gold (NYSE:KGC) - P/E: 6.32

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 saw an increase in earnings per share from 0.05 in Q3 to 0.19 now. 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%.

Celanese's earnings per share for Q4 sits at 2.09, whereas in Q3, they were at 1.95. Its most recent dividend yield is at 2.28%, which has increased by 0.15% from 2.13% in the previous quarter.

FutureFuel saw a decrease in earnings per share from 0.35 in Q2 to 0.16 now. 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%.

Most recently, Kinross Gold reported earnings per share at 0.27, whereas in Q3 earnings per share sat at 0.25. Its most recent dividend yield is at 1.63%, which has increased by 0.17% from 1.46% in the previous 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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