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. Ramaco Resources METC - P/E: 4.84
2. CVR Partners UAN - P/E: 3.91
3. Hudson Technologies HDSN - P/E: 7.28
4. CF Industries Holdings CF - P/E: 6.58
5. United States Steel X - P/E: 4.18

This quarter, Ramaco Resources experienced a decrease in earnings per share, which was $0.57 in Q1 and is now $0.17. The company's most recent dividend yield sits at 5.57%, which has decreased by 0.23% from 5.8% last quarter.

CVR Partners's earnings per share for Q2 sits at $5.66, whereas in Q1, they were at 9.64. The company's most recent dividend yield sits at 18.31%, which has decreased by 28.2% from 46.51% last quarter.

This quarter, Hudson Technologies experienced an increase in earnings per share, which was $0.33 in Q1 and is now $0.41. CF Industries Holdings has reported Q2 earnings per share at $2.7, which has decreased by 5.26% compared to Q1, which was 2.85. Its most recent dividend yield is at 2.28%, which has increased by 0.12% from 2.16% in the previous quarter.

Most recently, United States Steel reported earnings per share at $1.92, whereas in Q1 earnings per share sat at $0.77. The company's most recent dividend yield sits at 0.78%, which has decreased by 0.07% from 0.85% 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.