The 10 Most Undervalued Materials Sector Stocks

|
 |  Includes: ESOA, FCX, GFI, GG, KGC, NEM, PKX, RIG, RIO, TCPTF
by: Kapitall

The following is a list of the most undervalued material sector stocks. All of these stocks are deeply undervalued when comparing the following ratios to their competitors:

  • Trailing 12 Months Price to Earnings Ratio
  • Trailing 12 Months Price to Sales Ratio
  • Most Recent Quarter Price to Book Ratio
  • Trailing 12 Month Price to Cashflow
  • Trailing 12 Month Price to Free Cashflow

Is this a list of falling knives, or are there some hidden gems in this list? What do you think? Full details below.

Valuation data and industry comps sourced from Reuters, short float and performance data sourced from Finviz.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.



1. Energy Services of America Corporation (ESA): Oil & Gas Equipment & Services Industry. Market cap of $428.61M. TTM Price/Earnings ratio at 9.17 vs. industry average at 23.4. TTM Price/Sales ratio at 0.24 vs. industry average at 3.04. Price/Book ratio at 0.88 vs. industry average at 3.2. TTM Price/Cashflow ratio at 4.44 vs. industry average at 11.66. TTM Price/FreeCashflow ratio at 25.27 vs. industry average at 177.18. Short float at 0.02%, which implies a short ratio of 0.71 days. The stock has gained 45.67% over the last year.

2. Newmont Mining Corp. (NYSE:NEM):
Gold Industry. Market cap of $27.89B. TTM Price/Earnings ratio at 13.87 vs. industry average at 31.67. TTM Price/Sales ratio at 2.93 vs. industry average at 108.35. Price/Book ratio at 2.28 vs. industry average at 3.34. TTM Price/Cashflow ratio at 7.14 vs. industry average at 18.68. TTM Price/FreeCashflow ratio at 16.68 vs. industry average at 26.44. Short float at 2.68%, which implies a short ratio of 1.96 days. The stock has gained 17.76% over the last year.

3. Transocean Ltd. (NYSE:RIG): Oil & Gas Drilling & Exploration Industry. Market cap of $26.46B. TTM Price/Earnings ratio at 10.78 vs. industry average at 26.9. TTM Price/Sales ratio at 2.61 vs. industry average at 2.84. Price/Book ratio at 1.26 vs. industry average at 2.31. TTM Price/Cashflow ratio at 6.49 vs. industry average at 7.54. TTM Price/FreeCashflow ratio at 10.65 vs. industry average at 17.39. Short float at 4.67%, which implies a short ratio of 2.27 days. The stock has lost -10.84% over the last year.

4. Rio Tinto Plc (NYSE:RIO):
Steel & Iron Industry. Market cap of $140.72B. TTM Price/Earnings ratio at 15.28 vs. industry average at 31.67. TTM Price/Sales ratio at 2.92 vs. industry average at 108.35. Price/Book ratio at 3.09 vs. industry average at 3.34. TTM Price/Cashflow ratio at 10.62 vs. industry average at 18.68. TTM Price/FreeCashflow ratio at 17.17 vs. industry average at 26.44. Short float at 0.22%, which implies a short ratio of 1.83 days. The stock has gained 21.68% over the last year.

5. Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX): Copper Industry. Market cap of $55.85B. TTM Price/Earnings ratio at 14.5 vs. industry average at 22.59. TTM Price/Sales ratio at 3.1 vs. industry average at 6.54. Price/Book ratio at 4.82 vs. industry average at 4.07. TTM Price/Cashflow ratio at 9.47 vs. industry average at 20.49. TTM Price/FreeCashflow ratio at 13.88 vs. industry average at 18.67. Short float at 3%, which implies a short ratio of 1.38 days. The stock has gained 42.14% over the last year.

6. Gold Fields Ltd. (NYSE:GFI):
Gold Industry. Market cap of $11.93B. TTM Price/Earnings ratio at 26.75 vs. industry average at 31.67. TTM Price/Sales ratio at 2.68 vs. industry average at 108.35. Price/Book ratio at 1.98 vs. industry average at 3.34. TTM Price/Cashflow ratio at 9.7 vs. industry average at 18.68. TTM Price/FreeCashflow ratio at 67.28 vs. industry average at 26.44. Short float at 0.71%, which implies a short ratio of 1.38 days. The stock has gained 29.03% over the last year.

7. Goldcorp Inc. (NYSE:GG): Gold Industry. Market cap of $30.09B. TTM Price/Earnings ratio at 22.68 vs. industry average at 31.67. TTM Price/Sales ratio at 9.23 vs. industry average at 108.35. Price/Book ratio at 1.77 vs. industry average at 3.34. TTM Price/Cashflow ratio at 15.9 vs. industry average at 18.68. TTM Price/FreeCashflow ratio at 102.33 vs. industry average at 26.44. Short float at 0.94%, which implies a short ratio of 1.12 days. The stock has gained 1.9% over the last year.

8. Kinross Gold Corporation (NYSE:KGC): Gold Industry. Market cap of $19.04B. TTM Price/Earnings ratio at 15.58 vs. industry average at 31.67. TTM Price/Sales ratio at 6.83 vs. industry average at 108.35. Price/Book ratio at 1.43 vs. industry average at 3.34. TTM Price/Cashflow ratio at 13.87 vs. industry average at 18.68. TTM Price/FreeCashflow ratio at 42.74 vs. industry average at 26.44. Short float at 0.72%, which implies a short ratio of 1.32 days. The stock has lost -11.93% over the last year.

9. POSCO (NYSE:PKX): Steel & Iron Industry. Market cap of $32.28B. TTM Price/Earnings ratio at 9 vs. industry average at 76.04. TTM Price/Sales ratio at 1.36 vs. industry average at 3.69. Price/Book ratio at 1.91 vs. industry average at 2.01. TTM Price/Cashflow ratio at 6.38 vs. industry average at 82.14. TTM Price/FreeCashflow ratio at 26.12 vs. industry average at 6.19. Short float at 0.09%, which implies a short ratio of 0.7 days. The stock has lost -22.99% over the last year.

10. Thompson Creek Metals Company Inc. (TC):
Industrial Metals & Minerals Industry. Market cap of $2.47B. TTM Price/Earnings ratio at 11.77 vs. industry average at 22.59. TTM Price/Sales ratio at 4.54 vs. industry average at 6.54. Price/Book ratio at 1.82 vs. industry average at 4.07. TTM Price/Cashflow ratio at 10.22 vs. industry average at 20.49. TTM Price/FreeCashflow ratio at 494.32 vs. industry average at 18.67. Short float at 3.99%, which implies a short ratio of 2.76 days. The stock has gained 1.83% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.