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. Olympic Steel ZEUS - P/E: 5.09
2. TimkenSteel TMST - P/E: 6.62
3. Reliance Steel & Aluminum RS - P/E: 7.94
4. Boise Cascade BCC - P/E: 3.32
5. CVR Partners UAN - P/E: 4.1

Olympic Steel has reported Q3 earnings per share at $1.14, which has decreased by 65.03% compared to Q2, which was 3.26. Most recently, the company reported a dividend yield of 1.06%, which has decreased by 0.28% from last quarter's yield of 1.34%.

TimkenSteel's earnings per share for Q3 sits at $-0.09, whereas in Q2, they were at 1.29. Reliance Steel & Aluminum saw a decrease in earnings per share from 6.48 in Q3 to $5.87 now. Its most recent dividend yield is at 1.71%, which has decreased by 0.15% from 1.86% in the previous quarter.

Boise Cascade saw an increase in earnings per share from 5.49 in Q2 to $5.52 now. CVR Partners has reported Q3 earnings per share at $-1.87, which has decreased by 116.82% compared to Q2, which was 11.12. The company's most recent dividend yield sits at 5.82%, which has decreased by 30.92% from 36.74% 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.