5 Value Stocks To Watch In The Industrials Sector

The Meaning Behind 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 industrials sector:

1. ZIM Integrated Shipping ZIM - P/E: 3.16
2. Ocean Bio-Chem OBCI - P/E: 9.44
3. Golden Ocean Group GOGL - P/E: 7.46
4. NL Industries NL - P/E: 8.54
5. Navios Maritime Partners NMM - P/E: 3.08

Most recently, ZIM Integrated Shipping reported earnings per share at 7.38, whereas in Q1 earnings per share sat at 5.13. ZIM Integrated Shipping does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Ocean Bio-Chem has reported Q2 earnings per share at 0.27, which has increased by 35.0% compared to Q1, which was 0.2. Its most recent dividend yield is at 1.3%, which has increased by 0.35% from 0.95% in the previous quarter.

Golden Ocean Group has reported Q2 earnings per share at 0.52, which has increased by 271.43% compared to Q1, which was 0.14. The company's most recent dividend yield sits at 18.64%, which has increased by 8.29% from 10.35% last quarter.

Most recently, NL Industries reported earnings per share at 0.26, whereas in Q1 earnings per share sat at 0.27. Its most recent dividend yield is at 4.15%, which has increased by 0.15% from 4.0% in the previous quarter.

Navios Maritime Partners saw an increase in earnings per share from 1.01 in Q1 to 4.31 now. The company's most recent dividend yield sits at 0.67%, which has decreased by 0.17% from 0.84% last 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.