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

Michael Teague is a staff writer for Equities.com. His previous experience includes three years as the associate editor of Los Angeles-based Al Jadid Magazine, a bi-annual review of the arts & culture of the Middle East, where he contributed many articles on the region in the form of features and book & film reviews. His educational background includes a BA in French literature from the University of California, Irvine, where he developed a startling proclivity for anything having to do with the 19th century.
Michael Teague is a staff writer for Equities.com. His previous experience includes three years as the associate editor of Los Angeles-based Al Jadid Magazine, a bi-annual review of the arts & culture of the Middle East, where he contributed many articles on the region in the form of features and book & film reviews. His educational background includes a BA in French literature from the University of California, Irvine, where he developed a startling proclivity for anything having to do with the 19th century.
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,

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