Understanding Value Stocks
A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.
Below is a list of notable value stocks in the utilities sector:
- Brookfield Renewable (NYSE:BEPC) - P/E: 6.89
- Genie Energy (NYSE:GNE) - P/E: 6.9
- Hawaiian Electric Indus (NYSE:HE) - P/E: 6.31
- Pampa Energia (NYSE:PAM) - P/E: 3.86
- Enel Chile (NYSE:ENIC) - P/E: 2.97
This quarter, Brookfield Renewable experienced a decrease in earnings per share, which was $-0.09 in Q1 and is now $-0.1. The company's most recent dividend yield sits at 4.77%, which has increased by 0.58% from 4.19% last quarter.
Genie Energy saw a decrease in earnings per share from 0.54 in Q1 to $0.45 now. Its most recent dividend yield is at 2.19%, which has increased by 0.23% from 1.96% in the previous quarter.
Hawaiian Electric Indus has been featured as a value stock. Hawaiian Electric Indus's Q2 EPS sits at $0.5, which has not changed since last quarter (Q1). Most recently, the company reported a dividend yield of 3.75%, which has increased by 0.01% from last quarter's yield of 3.74%.
Pampa Energia has reported Q2 earnings per share at $3.01, which has increased by 17.58% compared to Q1, which was 2.56. Enel Chile has reported Q2 earnings per share at $0.1, which has decreased by 23.08% compared to Q1, which was 0.13. 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%.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.