5 Value Stocks To Watch In The Basic Materials Sector
Portfolio Pulse from Benzinga Insights
The article highlights five value stocks in the Basic Materials sector based on low P/E ratios, indicating potential undervaluation. United States Steel (X), Celanese (CE), LSB Industries (LXU), Warrior Met Coal (HCC), and Ferroglobe (GSM) are noted for their P/E ratios and recent financial performance, including changes in earnings per share and dividend yields. The article suggests that while value stocks may be undervalued, there is a risk they may not rebound as expected.
November 10, 2023 | 2:39 pm
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NEGATIVE IMPACT
LSB Industries has a P/E of 6.51, with a decrease in EPS from $0.25 to $-0.1.
The negative EPS could lead to investor concern despite the low P/E ratio, potentially causing a short-term negative impact on the stock price.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Ferroglobe has a P/E of 8.98, with a decrease in EPS from $0.3 to $0.27 but a significant increase in dividend yield from 2.11% to 2.99%.
The slight decrease in EPS may be offset by the substantial increase in dividend yield, leading to a neutral short-term impact on the stock price.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 70
NEUTRAL IMPACT
United States Steel has a low P/E of 7.32, with a decrease in EPS from $1.92 to $1.4 and a slight dividend yield reduction from 0.78% to 0.62%.
The decrease in EPS and dividend yield might concern investors, but the low P/E ratio could indicate undervaluation, leading to a neutral short-term impact.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
POSITIVE IMPACT
Celanese has a P/E of 6.26, with an increase in EPS from $2.17 to $2.5 and a slight dividend yield increase from 2.26% to 2.29%.
The increase in both EPS and dividend yield, combined with a low P/E ratio, suggests a positive outlook, potentially leading to a short-term price increase.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 80
POSITIVE IMPACT
Warrior Met Coal has a P/E of 5.36, with an increase in EPS from $1.63 to $1.85 but a decrease in dividend yield from 0.66% to 0.6%.
The increase in EPS is a positive sign, although the slight decrease in dividend yield is a negative. Overall, the low P/E ratio could lead to a positive short-term impact.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 75