A Look Into Basic Materials Sector Value Stocks
Portfolio Pulse from Benzinga Insights
The article identifies notable value stocks in the basic materials sector based on low P/E multiples. Sociedad Quimica Y Minera (SQM), Cabot (CBT), Albemarle (ALB), FutureFuel (FF), and Cementos Pacasmayo (CPAC) are highlighted. SQM saw a decrease in EPS and an increase in dividend yield, CBT experienced an increase in both EPS and dividend yield, ALB had a decrease in EPS but an increase in dividend yield, FF saw an increase in EPS with a stable dividend yield, and CPAC reported a slight decrease in EPS and dividend yield. Value stocks carry the risk of not rebounding from undervalued positions.
December 01, 2023 | 2:38 pm
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NEGATIVE IMPACT
Cementos Pacasmayo's EPS slightly decreased from $0.15 to $0.14, and its dividend yield decreased from 13.13% to 10.45%.
Both a decrease in EPS and dividend yield could be seen as negative by investors, potentially leading to a short-term negative impact on the stock price.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 80
NEUTRAL IMPACT
Albemarle's EPS decreased from $7.33 to $2.74, but its dividend yield increased from 0.67% to 1.15%.
The sharp decrease in EPS could be a negative signal, but the increase in dividend yield may provide some cushion, resulting in a neutral short-term impact.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
SQM experienced a decrease in EPS from $2.03 to $1.68 and an increase in dividend yield from 8.21% to 12.69%.
The decrease in EPS may concern investors, but the significant increase in dividend yield could offset this, leading to a neutral short-term impact.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Cabot's EPS increased from $1.42 to $1.65, while the dividend yield slightly decreased from 2.3% to 2.21%.
The increase in EPS is a positive sign, suggesting improved profitability, which could lead to a positive short-term impact despite the slight decrease in dividend yield.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 80
POSITIVE IMPACT
FutureFuel's EPS improved from -$0.23 to $0.06, with a stable dividend yield of 2.78%.
The improvement in EPS from negative to positive is a strong indicator of recovery, which could positively impact the stock in the short term, while the stable dividend yield adds to the attractiveness.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70