Understanding 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.

Benzinga Insights has compiled a list of value stocks in the basic materials sector that may be worth watching:

1. Tronox Holdings TROX - P/E: 3.42
2. Clearwater Paper CLW - P/E: 6.28
3. Loma Negra Cia Industria LOMA - P/E: 9.5
4. Great Panther Mining GPL - P/E: 6.54
5. B2Gold BTG - P/E: 8.62

This quarter, Tronox Holdings experienced an increase in earnings per share, which was 0.19 in Q4 and is now 0.43. The company's most recent dividend yield sits at 1.42%, which has decreased by 0.17% from 1.59% last quarter.

Clearwater Paper has reported Q1 earnings per share at 0.69, which has decreased by 52.41% compared to Q4, which was 1.45. Clearwater Paper does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Loma Negra Cia Industria has reported Q1 earnings per share at 0.24, which has increased by 300.0% compared to Q4, which was 0.06. Loma Negra Cia Industria does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Great Panther Mining reported earnings per share at 0.0, whereas in Q4 earnings per share sat at 0.02. Great Panther Mining does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, B2Gold reported earnings per share at 0.09, whereas in Q4 earnings per share sat at 0.14. The company's most recent dividend yield sits at 3.16%, which has increased by 0.14% from 3.02% last 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.