What is a Value Stock?
A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.
Benzinga Insights has compiled a list of value stocks in the basic materials sector that may be worth watching:
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Koppers Hldgs (NYSE: KOP) – P/E: 6.98
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Warrior Met Coal (NYSE: HCC) – P/E: 9.61
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Kraton (NYSE: KRA) – P/E: 4.85
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Turquoise Hill Resources (NYSE: TRQ) – P/E: 4.66
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FutureFuel (NYSE: FF) – P/E: 4.92
Koppers Hldgs has reported Q2 earnings per share at 1.27, which has increased by 170.21% compared to Q1, which was 0.47. Koppers Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Warrior Met Coal reported earnings per share at -0.18, whereas in Q1 earnings per share sat at 0.39. Most recently, the company reported a dividend yield of 1.23%, which has decreased by 0.61% from last quarter’s yield of 1.84%.
Kraton has reported Q2 earnings per share at 0.3, which has increased by 11.11% compared to Q1, which was 0.27. Kraton does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Turquoise Hill Resources reported earnings per share at 0.04, whereas in Q1 earnings per share sat at 0.03. Turquoise Hill Resources does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, FutureFuel reported earnings per share at 0.35, whereas in Q1 earnings per share sat at 0.44. FutureFuel does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
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.
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