Understanding 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 basic materials sector:
- Mosaic MOS - P/E: 7.83
- Hudson Technologies HDSN - P/E: 9.89
- Gerdau GGB - P/E: 3.31
- Mercer International MERC - P/E: 8.87
- Dow DOW - P/E: 7.73
Mosaic's earnings per share for Q3 sits at 1.35, whereas in Q2, they were at 1.17. Most recently, the company reported a dividend yield of 0.72%, which has decreased by 0.25% from last quarter's yield of 0.97%.
Most recently, Hudson Technologies reported earnings per share at 0.34, whereas in Q2 earnings per share sat at 0.24. Hudson Technologies does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Gerdau reported earnings per share at 0.62, whereas in Q2 earnings per share sat at 0.35. Most recently, the company reported a dividend yield of 20.4%, which has increased by 13.44% from last quarter's yield of 6.96%.
Mercer International has reported Q3 earnings per share at 1.04, which has increased by 225.0% compared to Q2, which was 0.32. Most recently, the company reported a dividend yield of 2.23%, which has increased by 0.71% from last quarter's yield of 1.52%.
Dow's earnings per share for Q3 sits at 2.75, whereas in Q2, they were at 2.72. Its most recent dividend yield is at 4.92%, which has increased by 0.56% from 4.36% in the previous quarter.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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