The Meaning Behind 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.
Benzinga Insights has compiled a list of value stocks in the basic materials sector that may be worth watching:
- Commercial Metals (NYSE:CMC) – P/E: 4.22
- Methanex (NASDAQ:MEOH) – P/E: 4.51
- SunCoke Energy (NYSE:SXC) – P/E: 6.17
- Ternium (NYSE:TX) – P/E: 1.53
- Resolute Forest Prods (NYSE:RFP) – P/E: 3.75
Most recently, Commercial Metals reported earnings per share at $2.61, whereas in Q2 earnings per share sat at $1.53. Its most recent dividend yield is at 1.51%, which has increased by 0.15% from 1.36% in the previous quarter.
Methanex saw a decrease in earnings per share from 2.16 in Q1 to $1.16 now. Most recently, the company reported a dividend yield of 1.93%, which has increased by 0.73% from last quarter’s yield of 1.2%.
Most recently, SunCoke Energy reported earnings per share at $0.21, whereas in Q1 earnings per share sat at $0.35. Most recently, the company reported a dividend yield of 4.38%, which has increased by 1.5% from last quarter’s yield of 2.88%.
Ternium has reported Q2 earnings per share at $4.07, which has increased by 3.04% compared to Q1, which was 3.95. Its most recent dividend yield is at 4.23%, which has increased by 2.53% from 1.7% in the previous quarter.
Resolute Forest Prods’s earnings per share for Q2 sits at $2.0, whereas in Q1, they were 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.