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A Look Into Basic Materials Sector Value Stocks

Author: Benzinga Insights | December 01, 2023 10:38am

Understanding 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. Sociedad Quimica Y Minera (NYSE:SQM) - P/E: 4.85
  2. Cabot (NYSE:CBT) - P/E: 9.82
  3. Albemarle (NYSE:ALB) - P/E: 4.3
  4. FutureFuel (NYSE:FF) - P/E: 9.0
  5. Cementos Pacasmayo (NYSE:CPAC) - P/E: 8.95

This quarter, Sociedad Quimica Y Minera experienced a decrease in earnings per share, which was $2.03 in Q2 and is now $1.68. The company's most recent dividend yield sits at 12.69%, which has increased by 4.48% from 8.21% last quarter.

This quarter, Cabot experienced an increase in earnings per share, which was $1.42 in Q3 and is now $1.65. Most recently, the company reported a dividend yield of 2.21%, which has decreased by 0.09% from last quarter's yield of 2.3%.

Albemarle's earnings per share for Q3 sits at $2.74, whereas in Q2, they were at 7.33. Its most recent dividend yield is at 1.15%, which has increased by 0.48% from 0.67% in the previous quarter.

FutureFuel saw an increase in earnings per share from -0.23 in Q2 to $0.06 now. Most recently, the company reported a dividend yield of 2.78%, which has ('', 'not changed') by 0.0% from last quarter's yield of 2.78%.

Most recently, Cementos Pacasmayo reported earnings per share at $0.14, whereas in Q2 earnings per share sat at $0.15. The company's most recent dividend yield sits at 10.45%, which has decreased by 2.68% from 13.13% 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: ALB CBT CPAC FF SQM

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