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5 Value Stocks In The Basic Materials Sector

Author: Benzinga Insights | February 23, 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.

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

  1. Commercial Metals (NYSE:CMC) - P/E: 8.24
  2. LSB Industries (NYSE:LXU) - P/E: 6.1
  3. Clearwater Paper (NYSE:CLW) - P/E: 6.18
  4. Sylvamo (NYSE:SLVM) - P/E: 9.31
  5. Origin Mat (NASDAQ:ORGN) - P/E: 1.47

Commercial Metals has reported Q1 earnings per share at $1.63, which has decreased by 3.55% compared to Q4, which was 1.69. The company's most recent dividend yield sits at 1.31%, which has decreased by 0.02% from 1.33% last quarter.

LSB Industries's earnings per share for Q3 sits at $-0.1, whereas in Q2, they were at 0.25. Clearwater Paper saw a decrease in earnings per share from 2.19 in Q3 to $1.35 now. This quarter, Sylvamo experienced a decrease in earnings per share, which was $1.7 in Q3 and is now $1.16. Its most recent dividend yield is at 2.14%, which has decreased by 0.25% from 2.39% in the previous quarter.

Origin Mat saw an increase in earnings per share from -0.05 in Q2 to $0.22 now.

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: CLW CMC LXU ORGN SLVM

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