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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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
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
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