Six S&P Basic Materials Stocks Undervalued by the Index They’re Outperforming

Michael Teague |

The strong headwinds that have sent stocks lower in 2014 seem to have abated over the past two weeks, but investors would still do well to proceed with caution before deciding to step on the gas, or slam on the breaks.

To put this into some perspective, consider that the 2014 return of the benchmark index so far is just shy of half a percentage point, a very sickly contrast to last year’s results. But commodities and materials investors can take heart all the same in the fact that a robust number of basic materials companies are handily outperforming the Standard & Poor’s 0.48 percent gains, at least for the time being.

Six of these companies also present investors with the added benefit that they are trading at valuations below the current index average of 19.48, suggesting the possibility that they are available for a discount.

 

Helmerich & Payne Inc. (HP)

Industry: Oil & Gas Drilling & Exploration

Market-Cap: $9.17 billion

Price: $90.59

2014 Performance: +8.52 percent

P/E: 13.40

 

LyondellBasell Industries NV (LYB)

Industry: Specialty Chemicals

Market-Cap: $46.88 billion

Price: $84.47

2014 Performance: +5.22 percent

P/E: 12.24

 

The Dow Chemical Company (DOW)

Industry: Major Diversified Chemicals

Market-Cap: $55.59 billion

Price: $46.71

2014 Performance: +5.20 percent

P/E: 13.16

 

Eastman Chemical Co. ($EMN)

Industry: Major Diversified Chemicals

Market-Cap: $12.76 billion

Price: $82.84

2014 Performance: +2.65 percent

P/E: 16.98

 

The Mosaic Company (MOS)

Industry: Agricultural Chemicals

Market-Cap: $19.79 billion

Price: $47.78

2014 Performance:+1.08 percent

P/E: 18.81

 

Occidental Petroleum Corporation (OXY)

Industry: Independent Oil & Gas

Market-Cap: $77.10 billion

Price: $95.76

2014 Performance: +0.69 percent

P/E: 16.65

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
MOS Mosaic Company (The) 28.82 -0.27 -0.93 3,778,594
HP Helmerich & Payne Inc. 79.45 1.60 2.06 2,217,503
LYB LyondellBasell Industries NV Class A (Netherlands) 89.14 -2.04 -2.24 3,804,906
EMN Eastman Chemical Company 74.63 0.22 0.30 1,127,096
OXY Occidental Petroleum Corporation 70.85 -0.42 -0.59 4,153,338
IKSGY JSC Irkutskenergo ADR (Sponsored) 11.99 0.00 0.00 55

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