What Defines 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.
The following stocks are considered to be notable value stocks in the basic materials sector:
- LyondellBasell Industries (NYSE:LYB) – P/E: 4.79
- Flexible Solutions Intl (AMEX:FSI) – P/E: 5.79
- Teck Resources (NYSE:TECK) – P/E: 4.18
- West Fraser Timber (NYSE:WFG) – P/E: 3.27
- Resolute Forest Prods (NYSE:RFP) – P/E: 3.76
LyondellBasell Industries saw an increase in earnings per share from 4.0 in Q1 to $5.19 now. The company’s most recent dividend yield sits at 5.22%, which has increased by 0.95% from 4.27% last quarter.
Flexible Solutions Intl’s earnings per share for Q2 sits at $0.13, whereas in Q1, they were at 0.12. Teck Resources’s earnings per share for Q2 sits at $2.55, whereas in Q1, they were at 2.34. Its most recent dividend yield is at 1.45%, which has increased by 0.06% from 1.39% in the previous quarter.
West Fraser Timber’s earnings per share for Q2 sits at $7.59, whereas in Q1, they were at 10.25. Most recently, Resolute Forest Prods reported earnings per share at $2.0, whereas in Q1 earnings per share sat at $2.26.
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.
