A Look Into Basic Materials Sector Value Stocks

Author: Benzinga Insights | August 25, 2023 10:39am

What is 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.

The following stocks are considered to be notable value stocks in the basic materials sector:

1. Suzano (NYSE:SUZ) - P/E: 2.81
2. Warrior Met Coal (NYSE:HCC) - P/E: 4.41
3. United States Steel (NYSE:X) - P/E: 5.66
4. Boise Cascade (NYSE:BCC) - P/E: 7.27
5. Perimeter Solutions (NYSE:PRM) - P/E: 8.85

Most recently, Suzano reported earnings per share at $0.79, whereas in Q1 earnings per share sat at $0.76. Warrior Met Coal has reported Q2 earnings per share at $1.63, which has decreased by 54.34% compared to Q1, which was 3.57. The company's most recent dividend yield sits at 0.66%, which has decreased by 0.1% from 0.76% last quarter.

United States Steel saw an increase in earnings per share from 0.77 in Q1 to $1.92 now. Its most recent dividend yield is at 0.78%, which has decreased by 0.07% from 0.85% in the previous quarter.

Most recently, Boise Cascade reported earnings per share at $3.67, whereas in Q1 earnings per share sat at $2.43. Most recently, the company reported a dividend yield of 0.81%, which has decreased by 0.07% from last quarter's yield of 0.88%.

This quarter, Perimeter Solutions experienced an increase in earnings per share, which was $0.06 in Q1 and is now $0.31.

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: BCC HCC PRM SUZ X