What are Value Stocks?
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.
Benzinga Insights has compiled a list of value stocks in the utilities sector that may be worth watching:
- Enel Chile (NYSE:ENIC) - P/E: 2.85
- Genie Energy (NYSE:GNE) - P/E: 6.72
- Pampa Energia (NYSE:PAM) - P/E: 3.71
- Hawaiian Electric Indus (NYSE:HE) - P/E: 6.22
- Brookfield Renewable (NYSE:BEPC) - P/E: 6.73
Most recently, Enel Chile reported earnings per share at $0.13, whereas in Q4 earnings per share sat at $0.86. Most recently, the company reported a dividend yield of 64.82%, which has decreased by 1.55% from last quarter's yield of 66.37%.
Genie Energy's earnings per share for Q2 sits at $0.45, whereas in Q1, they were at 0.54. The company's most recent dividend yield sits at 2.19%, which has increased by 0.23% from 1.96% last quarter.
Pampa Energia saw an increase in earnings per share from 2.56 in Q1 to $3.01 now. Hawaiian Electric Indus looks to be undervalued. It possesses an EPS of $0.5, which has not changed since last quarter (Q1). The company's most recent dividend yield sits at 3.75%, which has increased by 0.01% from 3.74% last quarter.
Brookfield Renewable saw a decrease in earnings per share from -0.09 in Q1 to $-0.1 now. Its most recent dividend yield is at 4.77%, which has increased by 0.58% from 4.19% in the previous 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.