Understanding 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:
- OPAL Fuels (NASDAQ:OPAL) - P/E: 7.13
- Cia Energetica DE Minas (NYSE:CIG) - P/E: 4.7
- Brookfield Renewable (NYSE:BEPC) - P/E: 3.38
- Enel Chile (NYSE:ENIC) - P/E: 2.96
- Suburban Propane Partners (NYSE:SPH) - P/E: 9.54
OPAL Fuels's earnings per share for Q3 sits at $-0.01, whereas in Q2, they were at -0.12. Most recently, Cia Energetica DE Minas reported earnings per share at $0.03, whereas in Q2 earnings per share sat at $0.12. Most recently, Brookfield Renewable reported earnings per share at $-0.14, whereas in Q2 earnings per share sat at $-0.1. Its most recent dividend yield is at 5.42%, which has increased by 0.65% from 4.77% in the previous quarter.
Enel Chile has reported Q3 earnings per share at $0.14, which has increased by 40.0% compared to Q2, which was 0.1. The company's most recent dividend yield sits at 64.82%, which has decreased by 1.55% from 66.37% last quarter.
Most recently, Suburban Propane Partners reported earnings per share at $-0.33, whereas in Q3 earnings per share sat at $-0.08. Most recently, the company reported a dividend yield of 7.71%, which has decreased by 0.99% from last quarter's yield of 8.7%.
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.