The importance of value stocks
A value stock is traditionally defined in terms of how investors in the market evaluate the future growth prospects of that company. Low P/E multiples are good basic indicators that the company is undervalued and can most likely be labeled a value stock.
Benzinga Insights has compiled a list of value stocks in the basic materials sector that might be worth watching:
- Commercial Metals CMC – P/E: 4.22
- methanex MEOH – P/E: 4.51
- SunCoke Energy SXC – P/E: 6.17
- ternium Send – P/E: 1.53
- Resolute Forest Prods tender – P/E: 3.75
Most recently, Commercial Metals reported earnings per share of $2.61, while second-quarter earnings per share were $1.53. Its most recent dividend yield is 1.51%, up 0.15% from 1.36% in the previous quarter.
Methanex saw its earnings per share fall to $1.16 from $2.16 in the first quarter. Most recently, the company reported a dividend yield of 1.93%, up 0.73% from last quarter’s 1.2% yield.
Most recently, SunCoke Energy reported earnings per share of $0.21 compared to earnings per share of $0.35 for the first quarter. Most recently, the company reported a dividend yield of 4.38%, up 1.5% from last quarter’s 2.88% yield.
Ternium reported earnings per share of $4.07 for the second quarter, up 3.04% from the first quarter’s $3.95. Its most recent dividend yield is 4.23%, up 2.53% from 1.7% in the previous quarter.
Resolute Forest Prods earnings per share for the second quarter are $2.0 compared to $2.26 for the first quarter.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical assessment process is not intended to make definitive decisions, our technology can provide investors with additional insight into the sector.