What is a Value Stock?
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.
Benzinga Insights has compiled a list of value stocks in the basic materials sector that may be worth watching:
- LyondellBasell Industries LYB – P/E: 6.01
- Cemex CX – P/E: 0.98
- Ascent Industries ACNT – P/E: 3.74
- Commercial Metals CMC – P/E: 4.42
- Kronos Worldwide KRO – P/E: 5.93
LyondellBasell Industries’s earnings per share for Q3 sits at $1.96, whereas in Q2, they were at 5.19. The company’s most recent dividend yield sits at 5.22%, which has increased by 0.95% from 4.27% last quarter.
Cemex looks to be undervalued. It possesses an EPS of $0.18, which has not changed since last quarter (Q2). Most recently, Ascent Industries reported earnings per share at $1.06, whereas in Q1 earnings per share sat at $0.99. Commercial Metals’s earnings per share for Q4 sits at $2.45, whereas in Q3, they were at 2.61. The company’s most recent dividend yield sits at 1.6%, which has increased by 0.09% from 1.51% last quarter.
This quarter, Kronos Worldwide experienced a decrease in earnings per share, which was $0.4 in Q2 and is now $0.18. The company’s most recent dividend yield sits at 7.93%, which has increased by 3.61% from 4.32% 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.
Image and article originally from www.benzinga.com. Read the original article here.