The Importance of Value Stocks
A value stock is generally characterized by how investors value a company’s future growth possibilities in the marketplace. Low P/E multiples are an excellent starting point for determining whether a firm is cheap and, thus, should be classified as a value stock.
A list of significant value stocks in the basic materials industry is provided below:
West Fraser Timber is a company based in Vancouver, British (NYSE:WFG) – Koppers Hldgs P/E: 4.77 (NYSE:KOP) – Caledonia Mining Corp. P/E: 5.78 (AMEX:CMCL) – Price/Earnings Ratio: 8.72 Great Panther Mining (AMEX:GPL) – Ternium P/E: 4.4 Ternium (NYSE:TX) – 5.65 P/E
West Fraser Timber’s earnings per share increased from 4.92 in the fourth quarter to 6.96 presently. Investors should be aware that West Fraser Timber does not pay a dividend, which is something to consider when considering hanging onto a company like this.
Earnings per share for Koppers Hldgs in Q1 were 1.02, compared to 0.75 in Q4. Koppers Hldgs does not pay a dividend, which is something to keep in mind if you’re thinking about holding on to a stock like this.
Caledonia Mining Corp’s earnings per share for the first quarter were 0.52, compared to 0.75 in the previous quarter. The company’s most recent dividend yield is 4.36 percent, up 1.0 percent from 3.36 percent the previous quarter.
Great Panther Mining announced a 0.0 earnings per share in the first quarter, down 100.0 percent from the previous quarter’s 0.02. Great Panther Mining does not pay a dividend, which is something to keep in mind if you’re thinking about holding on to a stock like this.
Ternium’s earnings per share increased from 2.11 in the fourth quarter to 3.07 today. The company’s most recent dividend yield is 0.66 percent, down 5.01 percent from the previous quarter’s 5.67 percent.
Benzinga Insights chose these five value stocks based on quantitative analysis. While this thorough judgment procedure is not intended to make final choices, it can provide investors with extra insight into the sector./n
