Overview Of Value Stocks In The Utilities Sector


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


What is a Value Stock?

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.

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Below is a list of notable value stocks in the utilities sector:

 

  1. Central Puerto (NYSE:CEPU) - P/E: 3.96
  2. Cia Paranaense De Energia (NYSE:ELP) - P/E: 8.95
  3. NRG Energy (NYSE:NRG) - P/E: 2.11
  4. Pampa Energia (NYSE:PAM) - P/E: 0.04
  5. Enel Americas (NYSE:ENIA) - P/E: 6.47

Central Puerto has been featured as a value stock. Central Puerto's Q1 EPS sits at 0.01, which has not changed since last quarter (Q4). Central Puerto does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Cia Paranaense De Energia experienced a decrease in earnings per share, which was 0.5 in Q4 and is now 0.42. The company’s most recent dividend yield sits at 6.26%, which has increased by 4.11% from 2.15% last quarter.

NRG Energy has reported Q1 earnings per share at 0.49, which has decreased by 71.68% compared to Q4, which was 1.73. Most recently, the company reported a dividend yield of 3.55%, which has decreased by 0.4% from last quarter’s yield of 3.95%.

Pampa Energia’s earnings per share for Q1 sits at 0.21, whereas in Q4, they were at 0.13. Pampa Energia does not currently have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Enel Americas reported earnings per share at 0.002, whereas in Q4 earnings per share sat at 0.01. Most recently, the company reported a dividend yield of 11.07%, which has increased by 9.39% from last quarter’s yield of 1.68%.

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.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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