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Overview Of Value Stocks In The Basic Materials Sector

Author: Benzinga Insights | July 29, 2022 10:46am

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.

Below is a list of notable value stocks in the basic materials sector:

  1. Synalloy (NASDAQ:SYNL) - P/E: 4.54
  2. TimkenSteel (NYSE:TMST) - P/E: 5.3
  3. Suzano (NYSE:SUZ) - P/E: 2.97
  4. Ero Copper (NYSE:ERO) - P/E: 3.71
  5. Olin (NYSE:OLN) - P/E: 5.55

Synalloy's earnings per share for Q1 sits at $0.99, whereas in Q4, they were at 0.84. Most recently, the company reported a dividend yield of 1.51%, which has increased by 0.47% from last quarter's yield of 1.04%.

Most recently, TimkenSteel reported earnings per share at $0.92, whereas in Q4 earnings per share sat at $0.8. Most recently, Suzano reported earnings per share at $1.46, whereas in Q4 earnings per share sat at $0.31. Most recently, Ero Copper reported earnings per share at $0.36, whereas in Q4 earnings per share sat at $0.65. Olin saw an increase in earnings per share from 2.48 in Q1 to $2.76 now. The company's most recent dividend yield sits at 1.54%, which has decreased by 0.08% from 1.62% 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.

Posted In: ERO OLN SUZ SYNL TMST

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