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.
The following stocks are considered to be notable value stocks in the basic materials sector:
- Univar Solns (NYSE:UNVR) - P/E: 8.21
- Dow (NYSE:DOW) - P/E: 6.04
- Tronox Holdings (NYSE:TROX) - P/E: 8.93
- Cleveland-Cliffs (NYSE:CLF) - P/E: 2.49
- Alto Ingredients (NASDAQ:ALTO) - P/E: 9.31
Univar Solns's earnings per share for Q1 sits at $1.07, whereas in Q4, they were at 0.6. Most recently, Dow reported earnings per share at $2.34, whereas in Q4 earnings per share sat at $2.15. Its most recent dividend yield is at 4.43%, which has decreased by 0.09% from 4.52% in the previous quarter.
Most recently, Tronox Holdings reported earnings per share at $0.6, whereas in Q4 earnings per share sat at $0.53. The company's most recent dividend yield sits at 3.0%, which has increased by 0.63% from 2.37% last quarter.
Cleveland-Cliffs saw a decrease in earnings per share from 1.78 in Q4 to $1.71 now. The company's most recent dividend yield sits at 3.25%, which has increased by 0.33% from 2.92% last quarter.
Alto Ingredients saw a decrease in earnings per share from 0.49 in Q4 to $-0.04 now.
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.
