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:
- Huntsman (NYSE:HUN) – P/E: 5.3
- Nucor (NYSE:NUE) – P/E: 3.91
- Dow (NYSE:DOW) – P/E: 5.33
- Mosaic (NYSE:MOS) – P/E: 6.19
- Equinox Gold (AMEX:EQX) – P/E: 2.65
Huntsman’s earnings per share for Q1 sits at $1.19, whereas in Q4, they were at 0.95. The company’s most recent dividend yield sits at 2.39%, which has increased by 0.08% from 2.31% last quarter.
This quarter, Nucor experienced a decrease in earnings per share, which was $7.97 in Q4 and is now $7.67. Most recently, the company reported a dividend yield of 1.54%, which has decreased by 0.09% from last quarter’s yield of 1.63%.
Most recently, Dow reported earnings per share at $2.34, whereas in Q4 earnings per share sat at $2.15. Most recently, the company reported a dividend yield of 4.43%, which has decreased by 0.09% from last quarter’s yield of 4.52%.
This quarter, Mosaic experienced an increase in earnings per share, which was $1.95 in Q4 and is now $2.41. Most recently, the company reported a dividend yield of 0.98%, which has decreased by 0.25% from last quarter’s yield of 1.23%.
Equinox Gold’s earnings per share for Q1 sits at $-0.08, whereas in Q4, they were at 0.25.
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.
