Overview Of Value Stocks In The Basic Materials 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.

Below is a list of notable value stocks in the basic materials sector:

1. Hycroft Mining Holding HYMC - P/E: 0.47
2. Companhia Siderurgica SID - P/E: 6.08
3. Ternium TX - P/E: 5.13
4. Boise Cascade BCC - P/E: 8.5
5. Koppers Hldgs KOP - P/E: 6.5

Hycroft Mining Holding saw an increase in earnings per share from -0.55 in Q4 to -0.16 now. Hycroft Mining Holding does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Companhia Siderurgica saw an increase in earnings per share from 0.15 in Q4 to 0.73 now. Companhia Siderurgica does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Ternium experienced an increase in earnings per share, which was 2.11 in Q4 and is now 3.07. Most recently, the company reported a dividend yield of 0.66%, which has decreased by 5.01% from last quarter's yield of 5.67%.

Boise Cascade saw an increase in earnings per share from 1.76 in Q4 to 3.76 now. Most recently, the company reported a dividend yield of 0.58%, which has decreased by 0.22% from last quarter's yield of 0.8%.

Koppers Hldgs has reported Q1 earnings per share at 1.02, which has increased by 36.0% compared to Q4, which was 0.75. 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.