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
