A Look Into Basic Materials Sector Value Stocks

What is a Value Stock?

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.

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

1. Mosaic MOS - P/E: 4.28
2. Olympic Steel ZEUS - P/E: 8.72
3. Teck Resources TECK - P/E: 7.33
4. Flexible Solutions Intl FSI - P/E: 5.18
5. ArcelorMittal MT - P/E: 3.6

Most recently, Mosaic reported earnings per share at $1.14, whereas in Q4 earnings per share sat at $1.74. Most recently, Olympic Steel reported earnings per share at $1.15, whereas in Q4 earnings per share sat at $0.28. The company's most recent dividend yield sits at 1.07%, which has increased by 0.01% from 1.06% last quarter.

Most recently, Teck Resources reported earnings per share at $1.32, whereas in Q4 earnings per share sat at $0.8. Most recently, Flexible Solutions Intl reported earnings per share at $0.07, whereas in Q4 earnings per share sat at $0.22. ArcelorMittal has reported Q1 earnings per share at $1.27, which has increased by 323.33% compared to Q4, which was 0.3. Most recently, the company reported a dividend yield of 1.28%, which has increased by 0.51% from last quarter's yield of 0.77%.

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.