Understanding 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:
- Mosaic (NYSE:MOS) - P/E: 7.76
- Ero Copper (NYSE:ERO) - P/E: 6.42
- Resolute Forest Products (NYSE:RFP) - P/E: 2.76
- Reliance Steel & Aluminum (NYSE:RS) - P/E: 9.1
- Hycroft Mining Holding (NASDAQ:HYMC) - P/E: 1.15
Mosaic saw an increase in earnings per share from 1.17 in Q2 to 1.35 now. The company's most recent dividend yield sits at 1.23%, which has increased by 0.51% from 0.72% last quarter.
Ero Copper saw a decrease in earnings per share from 0.58 in Q2 to 0.49 now. Resolute Forest Products saw a decrease in earnings per share from 3.74 in Q2 to 0.84 now. Reliance Steel & Aluminum saw an increase in earnings per share from 5.06 in Q2 to 6.15 now. Most recently, the company reported a dividend yield of 1.8%, which has decreased by 0.1% from last quarter's yield of 1.9%.
This quarter, Hycroft Mining Holding experienced a decrease in earnings per share, which was -0.14 in Q2 and is now -0.39.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.
