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.

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

1. GoldMining GLDG - P/E: 3.71
2. Sylvamo SLVM - P/E: 4.55
3. AdvanSix ASIX - P/E: 9.51
4. Braskem BAK - P/E: 2.75
5. Equinox Gold EQX - P/E: 4.73

This quarter, GoldMining experienced an increase in earnings per share, which was $-0.07 in Q2 and is now $-0.04. Sylvamo has reported Q4 earnings per share at $1.71, which has decreased by 24.67% compared to Q3, which was 2.27. Most recently, AdvanSix reported earnings per share at $0.8, whereas in Q3 earnings per share sat at $1.51. Its most recent dividend yield is at 1.21%, which has decreased by 0.03% from 1.24% in the previous quarter.

Braskem has reported Q3 earnings per share at $1.7, which has decreased by 51.7% compared to Q2, which was 3.52. Its most recent dividend yield is at 7.77%, which has increased by 2.39% from 5.38% in the previous quarter.

Equinox Gold saw an increase in earnings per share from 0.02 in Q3 to $0.25 now.

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.