Overview Of Value Stocks In The Basic Materials Sector
What are Value Stocks?
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.
Below is a list of notable value stocks in the basic materials sector:
- Clearwater Paper (NYSE:CLW) - P/E: 6.83
- Agnico Eagle Mines (NYSE:AEM) - P/E: 9.61
- Nucor (NYSE:NUE) - P/E: 8.84
- CF Industries Holdings (NYSE:CF) - P/E: 7.15
- Gerdau (NYSE:GGB) - P/E: 4.95
Clearwater Paper saw an increase in earnings per share from 1.74 in Q2 to $2.19 now. Agnico Eagle Mines has reported Q3 earnings per share at $0.44, which has decreased by 32.31% compared to Q2, which was 0.65. Most recently, the company reported a dividend yield of 3.24%, which has increased by 0.18% from last quarter's yield of 3.06%.
Most recently, Nucor reported earnings per share at $4.57, whereas in Q2 earnings per share sat at $5.81. Its most recent dividend yield is at 1.3%, which has increased by 0.03% from 1.27% in the previous quarter.
This quarter, CF Industries Holdings experienced a decrease in earnings per share, which was $2.7 in Q2 and is now $0.85. The company's most recent dividend yield sits at 1.9%, which has decreased by 0.38% from 2.28% last quarter.
This quarter, Gerdau experienced an increase in earnings per share, which was $0.35 in Q1 and is now $0.38. 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.