What is a Value Stock?
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.
The following stocks are considered to be notable value stocks in the energy sector:
- Amplify Energy (NYSE:AMPY) - P/E: 5.29
- Alliance Res Partners (NASDAQ:ARLP) - P/E: 6.45
- Delek US Hldgs (NYSE:DK) - P/E: 6.44
- Comstock Res (NYSE:CRK) - P/E: 3.34
- Equinor (NYSE:EQNR) - P/E: 4.08
Amplify Energy saw an increase in earnings per share from 0.73 in Q2 to $1.17 now. Most recently, the company reported a dividend yield of 9.62%, which has decreased by 0.89% from last quarter's yield of 10.51%.
Alliance Res Partners has reported Q3 earnings per share at $1.25, which has increased by 1.63% compared to Q2, which was 1.23. The company's most recent dividend yield sits at 8.32%, which has increased by 0.84% from 7.48% last quarter.
Most recently, Delek US Hldgs reported earnings per share at $0.02, whereas in Q2 earnings per share sat at $4.4. Its most recent dividend yield is at 2.83%, which has decreased by 0.17% from 3.0% in the previous quarter.
Comstock Res saw an increase in earnings per share from 1.0 in Q2 to $1.18 now. Most recently, the company reported a dividend yield of 2.66%, which has decreased by 5.99% from last quarter's yield of 8.65%.
Equinor has reported Q3 earnings per share at $2.13, which has increased by 36.54% compared to Q2, which was 1.56. The company's most recent dividend yield sits at 2.11%, which has decreased by 5.61% from 7.72% last quarter.
The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.