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:
- Chemours (NYSE:CC) - P/E: 5.58
- Koppers Hldgs (NYSE:KOP) - P/E: 8.84
- ICL Group (NYSE:ICL) - P/E: 5.07
- Gulf (NASDAQ:GURE) - P/E: 3.39
- Univar Solns (NYSE:UNVR) - P/E: 9.06
Chemours saw a decrease in earnings per share from 1.89 in Q2 to $1.24 now. Its most recent dividend yield is at 3.46%, which has increased by 0.52% from 2.94% in the previous quarter.
Koppers Hldgs saw an increase in earnings per share from 0.97 in Q2 to $1.19 now. Its most recent dividend yield is at 0.83%, which has ('', 'not changed') by 0.0% from 0.83% in the previous quarter.
Most recently, ICL Group reported earnings per share at $0.49, whereas in Q2 earnings per share sat at $0.58. Most recently, the company reported a dividend yield of 11.12%, which has decreased by 1.13% from last quarter's yield of 12.25%.
Gulf saw an increase in earnings per share from 0.37 in Q2 to $0.86 now. Most recently, Univar Solns reported earnings per share at $0.84, whereas in Q2 earnings per share sat at $1.0.
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.