Overview Of Value Stocks In The Basic Materials Sector

What are 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. CVR Partners UAN - P/E: 3.54
2. Tecnoglass TGLS - P/E: 7.67
3. Warrior Met Coal HCC - P/E: 5.31
4. Ingevity NGVT - P/E: 8.31
5. Koppers Hldgs KOP - P/E: 9.08

CVR Partners has reported Q2 earnings per share at $5.66, which has decreased by 41.29% compared to Q1, which was 9.64. Most recently, the company reported a dividend yield of 18.31%, which has decreased by 28.2% from last quarter's yield of 46.51%.

Most recently, Tecnoglass reported earnings per share at $1.12, whereas in Q1 earnings per share sat at $1.08. Most recently, the company reported a dividend yield of 0.99%, which has increased by 0.18% from last quarter's yield of 0.81%.

Warrior Met Coal has reported Q2 earnings per share at $1.63, which has decreased by 54.34% compared to Q1, which was 3.57. Its most recent dividend yield is at 0.6%, which has decreased by 0.06% from 0.66% in the previous quarter.

Ingevity has reported Q2 earnings per share at $1.41, which has increased by 29.36% compared to Q1, which was 1.09. Koppers Hldgs has reported Q2 earnings per share at $1.26, which has increased by 12.5% compared to Q1, which was 1.12. The company's most recent dividend yield sits at 0.62%, which has decreased by 0.13% from 0.75% 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.