Overview Of Value Stocks In The Basic Materials Sector

Author: Benzinga Insights | February 02, 2024 10:38am

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. Sociedad Quimica Y Minera (NYSE:SQM) - P/E: 4.07
2. Vale (NYSE:VALE) - P/E: 6.53
3. ArcelorMittal (NYSE:MT) - P/E: 5.55
4. Suzano (NYSE:SUZ) - P/E: 3.94
5. AdvanSix (NYSE:ASIX) - P/E: 7.9

This quarter, Sociedad Quimica Y Minera experienced a decrease in earnings per share, which was $2.03 in Q2 and is now $1.68. Most recently, the company reported a dividend yield of 12.69%, which has increased by 4.48% from last quarter's yield of 8.21%.

This quarter, Vale experienced an increase in earnings per share, which was $0.2 in Q2 and is now $0.66. ArcelorMittal's earnings per share for Q3 sits at $1.1, whereas in Q2, they were at 2.2. The company's most recent dividend yield sits at 1.28%, which has increased by 0.51% from 0.77% last quarter.

Suzano saw a decrease in earnings per share from 0.79 in Q2 to $-0.12 now. AdvanSix saw a decrease in earnings per share from 1.25 in Q2 to $-0.36 now. Most recently, the company reported a dividend yield of 2.28%, which has increased by 0.65% from last quarter's yield of 1.63%.

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: ASIX MT SQM SUZ VALE