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5 Value Stocks To Watch In The Basic Materials Sector

Author: Benzinga Insights | February 09, 2024 10:39am

What are 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. Ramaco Resources (NASDAQ:METCB) - P/E: 7.69
  2. Sylvamo (NYSE:SLVM) - P/E: 6.91
  3. Commercial Metals (NYSE:CMC) - P/E: 8.23
  4. CF Industries Holdings (NYSE:CF) - P/E: 7.11
  5. ICL Group (NYSE:ICL) - P/E: 6.5

Ramaco Resources's earnings per share for Q3 sits at $0.45, whereas in Q2, they were at 0.17. Its most recent dividend yield is at 3.12%, which has decreased by 1.92% from 5.04% in the previous quarter.

Sylvamo's earnings per share for Q3 sits at $1.7, whereas in Q2, they were at 1.14. Its most recent dividend yield is at 2.39%, which has decreased by 0.46% from 2.85% in the previous quarter.

This quarter, Commercial Metals experienced a decrease in earnings per share, which was $1.69 in Q4 and is now $1.63. Most recently, the company reported a dividend yield of 1.31%, which has decreased by 0.02% from last quarter's yield of 1.33%.

Most recently, CF Industries Holdings reported earnings per share at $0.85, whereas in Q2 earnings per share sat at $2.7. The company's most recent dividend yield sits at 2.58%, which has increased by 0.68% from 1.9% last quarter.

ICL Group's earnings per share for Q3 sits at $0.11, whereas in Q2, they were at 0.13. Most recently, the company reported a dividend yield of 4.42%, which has increased by 0.43% from last quarter's yield of 3.99%.

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: CF CMC ICL METCB SLVM

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