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5 Value Stocks In The Basic Materials Sector

Author: Benzinga Insights | March 01, 2024 10:39am

The Meaning Behind 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: 8.26
  2. Compañía de Minas (NYSE:BVN) - P/E: 6.82
  3. LSB Industries (NYSE:LXU) - P/E: 5.84
  4. CVR Partners (NYSE:UAN) - P/E: 4.18
  5. Gerdau (NYSE:GGB) - P/E: 4.81

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.

Compañía de Minas has reported Q4 earnings per share at $-0.04, which has increased by 63.64% compared to Q3, which was -0.11. Most recently, the company reported a dividend yield of 1.41%, which has increased by 0.69% from last quarter's yield of 0.72%.

LSB Industries's earnings per share for Q3 sits at $-0.1, whereas in Q2, they were at 0.25. Most recently, CVR Partners reported earnings per share at $0.94, whereas in Q3 earnings per share sat at $0.07. Its most recent dividend yield is at 9.28%, which has increased by 1.36% from 7.92% in the previous quarter.

Most recently, Gerdau reported earnings per share at $0.38, whereas in Q1 earnings per share sat at $0.35. Its most recent dividend yield is at 8.19%, which has increased by 1.75% from 6.44% in the previous 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: BVN CMC GGB LXU UAN

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