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5 Value Stocks In The Basic Materials Sector

Author: Benzinga Insights | May 19, 2023 10:39am

What are 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.

Below is a list of notable value stocks in the basic materials sector:

  1. Ternium (NYSE:TX) - P/E: 5.82
  2. Albemarle (NYSE:ALB) - P/E: 6.74
  3. Vale (NYSE:VALE) - P/E: 4.55
  4. Gulf Resources (NASDAQ:GURE) - P/E: 3.02
  5. ArcelorMittal (NYSE:MT) - P/E: 3.74

Ternium has reported Q1 earnings per share at $1.91, which has increased by 855.0% compared to Q4, which was 0.2. The company's most recent dividend yield sits at 9.5%, which has increased by 2.99% from 6.51% last quarter.

Albemarle saw an increase in earnings per share from 8.62 in Q4 to $10.32 now. The company's most recent dividend yield sits at 0.9%, which has increased by 0.25% from 0.65% last quarter.

Most recently, Vale reported earnings per share at $0.41, whereas in Q4 earnings per share sat at $0.82. Gulf Resources's earnings per share for Q1 sits at $-0.05, whereas in Q4, they were at -0.22. Most recently, ArcelorMittal reported earnings per share at $1.27, whereas in Q4 earnings per share sat at $0.3. Most recently, the company reported a dividend yield of 1.28%, which has increased by 0.51% from last quarter's yield of 0.77%.

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.

Posted In: ALB GURE MT TX VALE

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