5 Value Stocks To Watch In The Basic Materials Sector

Author: Benzinga Insights | December 22, 2023 10:38am

What are Value Stocks?

A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.

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

1. ArcelorMittal (NYSE:MT) - P/E: 5.71
2. LSB Industries (NYSE:LXU) - P/E: 7.43
3. Origin Mat (NASDAQ:ORGN) - P/E: 2.6
4. Ramaco Resources (NASDAQ:METCB) - P/E: 9.02
5. Albemarle (NYSE:ALB) - P/E: 5.16

ArcelorMittal saw a decrease in earnings per share from 2.2 in Q2 to $1.1 now. Its most recent dividend yield is at 1.28%, which has increased by 0.51% from 0.77% in the previous quarter.

This quarter, LSB Industries experienced a decrease in earnings per share, which was $0.25 in Q2 and is now $-0.1. Origin Mat has reported Q3 earnings per share at $0.22, which has increased by 540.0% compared to Q2, which was -0.05. Ramaco Resources saw an increase in earnings per share from 0.17 in Q2 to $0.45 now. Its most recent dividend yield is at 3.12%, which has decreased by 1.92% from 5.04% in the previous quarter.

Albemarle's earnings per share for Q3 sits at $2.74, whereas in Q2, they were at 7.33. The company's most recent dividend yield sits at 1.15%, which has increased by 0.48% from 0.67% 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 LXU METCB MT ORGN