Benzinga | Oct 22, 2021 10:17AM EDT

5 Value Stocks In The Basic Materials Sector

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.

The following stocks are considered to be notable value stocks in the basic materials sector:

2 LyondellBasell Industries (NYSE:LYB) - P/E: 7.91

4 Olympic Steel (NASDAQ:ZEUS) - P/E: 5.56

6 Commercial Metals (NYSE:CMC) - P/E: 9.41

8 Boise Cascade (NYSE:BCC) - P/E: 3.97

10 Tronox Holdings (NYSE:TROX) - P/E: 3.61

Most recently, LyondellBasell Industries reported earnings per share at 6.13, whereas in Q1 earnings per share sat at 3.18. The company's most recent dividend yield sits at 4.65%, which has increased by 0.67% from 3.98% last quarter.

This quarter, Olympic Steel experienced an increase in earnings per share, which was 1.97 in Q1 and is now 2.84. Its most recent dividend yield is at 0.28%, which has increased by 0.03% from 0.25% in the previous quarter.

Most recently, Commercial Metals reported earnings per share at 1.26, whereas in Q3 earnings per share sat at 1.04. Its most recent dividend yield is at 1.74%, which has increased by 0.27% from 1.47% in the previous quarter.

Most recently, Boise Cascade reported earnings per share at 7.62, whereas in Q1 earnings per share sat at 3.76. Boise Cascade does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Tronox Holdings saw an increase in earnings per share from 0.43 in Q1 to 0.61 now. Its most recent dividend yield is at 2.19%, which has increased by 0.77% from 1.42% in the previous quarter.

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.