5 Value Stocks In The Basic Materials Sector

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. Huntsman HUN - P/E: 5.3
2. Nucor NUE - P/E: 3.91
3. Dow DOW - P/E: 5.33
4. Mosaic MOS - P/E: 6.19
5. Equinox Gold EQX - P/E: 2.65

Huntsman's earnings per share for Q1 sits at $1.19, whereas in Q4, they were at 0.95. The company's most recent dividend yield sits at 2.39%, which has increased by 0.08% from 2.31% last quarter.

This quarter, Nucor experienced a decrease in earnings per share, which was $7.97 in Q4 and is now $7.67. Most recently, the company reported a dividend yield of 1.54%, which has decreased by 0.09% from last quarter's yield of 1.63%.

Most recently, Dow reported earnings per share at $2.34, whereas in Q4 earnings per share sat at $2.15. Most recently, the company reported a dividend yield of 4.43%, which has decreased by 0.09% from last quarter's yield of 4.52%.

This quarter, Mosaic experienced an increase in earnings per share, which was $1.95 in Q4 and is now $2.41. Most recently, the company reported a dividend yield of 0.98%, which has decreased by 0.25% from last quarter's yield of 1.23%.

Equinox Gold's earnings per share for Q1 sits at $-0.08, whereas in Q4, they were at 0.25.

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.