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5 Value Stocks To Watch In The Basic Materials Sector

Benzinga Insights
·2 min read

 

What is a Value Stock?

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. Turquoise Hill Resources (NYSE:TRQ) - P/E: 6.6

  2. FutureFuel (NYSE:FF) - P/E: 5.4

  3. Tronox Holdings (NYSE:TROX) - P/E: 2.35

  4. Verso (NYSE:VRS) - P/E: 3.36

  5. Koppers Hldgs (NYSE:KOP) - P/E: 7.71

Turquoise Hill Resources has reported Q3 earnings per share at 0.64, which has increased by 1500.0% compared to Q2, which was 0.04. Turquoise Hill Resources does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

FutureFuel's earnings per share for Q3 sits at 0.16, whereas in Q2, they were at 0.35. Its most recent dividend yield is at 1.91%, which has ('', 'not changed') by 0.0% from 1.91% in the previous quarter.

Tronox Holdings saw an increase in earnings per share from 0.03 in Q2 to 0.05 now. The company's most recent dividend yield sits at 2.62%, which has decreased by 0.61% from 3.23% last quarter.

Verso's earnings per share for Q3 sits at -0.92, whereas in Q2, they were at -0.99. Its most recent dividend yield is at 4.55%, which has decreased by 93.57% from 98.12% in the previous quarter.

This quarter, Koppers Hldgs experienced an increase in earnings per share, which was 1.27 in Q2 and is now 1.64. 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.

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