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) 26.93 -0.52 -1.89 5,411,670 Trade
HP Helmerich & Payne Inc. 60.64 -0.91 -1.48 2,705,909 Trade
LYB LyondellBasell Industries NV Class A (Netherlands) 84.76 -2.66 -3.04 4,565,433 Trade
EMN Eastman Chemical Company 79.75 -1.91 -2.34 1,826,558 Trade
OXY Occidental Petroleum Corporation 61.54 0.02 0.03 3,724,077 Trade
IKSGY JSC Irkutskenergo ADR (Sponsored) 17.55 0.00 0.00 0

Comments

Emerging Growth

NABUfit Global Inc

NABUfit Global Inc develops online fitness portal and a mobile app with the option of connecting existing and future monitoring devices (wearables etc.).

Private Markets

CF0005, LLC dba Mesa-Marshall #1-2

MESA Resources, Inc. ("MESA") is sponsoring the development of the oil & gas well completion project "Mesa-Marshall #1-2". MESA, founded in 1992, is engaged in the acquisition, exploration and development…

D-Wave

D-Wave Systems is the first quantum computing company. Its mission is to integrate new discoveries in physics, engineering, manufacturing, and computer science into breakthrough approaches to computation to help solve…