Benzinga | Oct 15, 2021 10:22AM EDT

Overview Of Value Stocks In The Basic Materials Sector

The Meaning Behind Value Stocks

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.

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

2 Hycroft Mining Holding (NASDAQ:HYMC) - P/E: 0.35

4 Steel Dynamics (NASDAQ:STLD) - P/E: 9.2

6 Resolute Forest Products (NYSE:RFP) - P/E: 3.14

8 ArcelorMittal (NYSE:MT) - P/E: 5.05

10 West Fraser Timber (NYSE:WFG) - P/E: 3.25

Hycroft Mining Holding has reported Q2 earnings per share at -0.14, which has increased by 12.5% compared to Q1, which was -0.16. Hycroft Mining Holding does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Steel Dynamics experienced an increase in earnings per share, which was 2.1 in Q1 and is now 3.4. Its most recent dividend yield is at 1.55%, which has decreased by 0.12% from 1.67% in the previous quarter.

Resolute Forest Products saw an increase in earnings per share from 1.45 in Q1 to 3.74 now. Resolute Forest Products does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, ArcelorMittal experienced an increase in earnings per share, which was 1.93 in Q1 and is now 3.46. The company's most recent dividend yield sits at 0.77%, which has decreased by 0.31% from 1.08% last quarter.

This quarter, West Fraser Timber experienced an increase in earnings per share, which was 6.96 in Q1 and is now 12.32. West Fraser Timber does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.