5 Value Stocks In The Basic Materials Sector

What are 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:

1. Ascent Industries ACNT - P/E: 4.5
2. Tronox Holdings TROX - P/E: 4.35
3. Ternium TX - P/E: 4.71
4. Constellium CSTM - P/E: 6.44
5. Westlake WLK - P/E: 6.86

Ascent Industries has reported Q4 earnings per share at $0.01, which has decreased by 83.33% compared to Q3, which was 0.06. Most recently, Tronox Holdings reported earnings per share at $-0.17, whereas in Q3 earnings per share sat at $0.69. Most recently, the company reported a dividend yield of 3.32%, which has decreased by 0.85% from last quarter's yield of 4.17%.

Ternium saw a decrease in earnings per share from 0.78 in Q3 to $0.2 now. Most recently, the company reported a dividend yield of 4.75%, which has decreased by 1.76% from last quarter's yield of 6.51%.

Constellium has reported Q4 earnings per share at $0.2, which has decreased by 77.53% compared to Q3, which was 0.89. This quarter, Westlake experienced a decrease in earnings per share, which was $3.1 in Q3 and is now $1.79. The company's most recent dividend yield sits at 1.15%, which has decreased by 0.2% from 1.35% 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.