What is a Value Stock?

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. Galiano Gold GAU - P/E: 4.86
2. Caledonia Mining Corp CMCL - P/E: 8.64
3. Tronox Holdings TROX - P/E: 3.35
4. B2Gold BTG - P/E: 6.85
5. Boise Cascade BCC - P/E: 7.43

Galiano Gold saw a decrease in earnings per share from 0.08 in Q4 to 0.06 now. Galiano Gold does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Caledonia Mining Corp has reported Q1 earnings per share at 0.52, which has decreased by 30.67% compared to Q4, which was 0.75. Most recently, the company reported a dividend yield of 3.36%, which has increased by 0.59% from last quarter's yield of 2.77%.

Tronox Holdings has reported Q1 earnings per share at 0.43, which has increased by 126.32% compared to Q4, which was 0.19. Most recently, the company reported a dividend yield of 1.42%, which has decreased by 0.17% from last quarter's yield of 1.59%.

B2Gold's earnings per share for Q1 sits at 0.09, whereas in Q4, they were at 0.14. Most recently, the company reported a dividend yield of 3.21%, which has increased by 0.05% from last quarter's yield of 3.16%.

Boise Cascade's earnings per share for Q1 sits at 3.76, whereas in Q4, they were at 1.76. Boise Cascade does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.