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5 Value Stocks To Watch In The Basic Materials Sector

Author: Benzinga Insights | February 03, 2023 10:39am

What Defines a Value Stock?

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. Caledonia Mining (AMEX:CMCL) - P/E: 5.95
  2. Suzano (NYSE:SUZ) - P/E: 3.33
  3. Algoma Steel Gr (NASDAQ:ASTL) - P/E: 1.69
  4. Steel Dynamics (NASDAQ:STLD) - P/E: 6.02
  5. UFP Packaging (NASDAQ:UFPI) - P/E: 8.86

Caledonia Mining's earnings per share for Q3 sits at $0.61, whereas in Q2, they were at 0.56. Most recently, the company reported a dividend yield of 4.42%, which has decreased by 1.28% from last quarter's yield of 5.7%.

Suzano's earnings per share for Q3 sits at $0.79, whereas in Q2, they were at 0.03. Algoma Steel Gr's earnings per share for Q2 sits at $0.28, whereas in Q1, they were at 1.17. The company's most recent dividend yield sits at 2.72%, which has increased by 0.5% from 2.22% last quarter.

This quarter, Steel Dynamics experienced a decrease in earnings per share, which was $5.46 in Q3 and is now $4.37. The company's most recent dividend yield sits at 1.48%, which has decreased by 0.18% from 1.66% last quarter.

This quarter, UFP Packaging experienced a decrease in earnings per share, which was $3.23 in Q2 and is now $2.66. Its most recent dividend yield is at 1.35%, which has increased by 0.01% from 1.34% in the previous quarter.

These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.

Posted In: ASTL CMCL STLD SUZ UFPI

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