Overview Of Value Stocks In The Energy 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 are 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.

The following stocks are considered to be notable value stocks in the energy sector:

  1. Oasis Midstream Partners (NASDAQ:OMP) - P/E: 6.91
  2. Oasis Petroleum (NASDAQ:OAS) - P/E: 3.54
  3. Hoegh LNG Partners (NYSE:HMLP) - P/E: 9.06
  4. DHT Holdings (NYSE:DHT) - P/E: 5.09
  5. Adams Resources & Energy (AMEX:AE) - P/E: 7.72

Most recently, Oasis Midstream Partners reported earnings per share at 0.72, whereas in Q4 earnings per share sat at 1.61. The company's most recent dividend yield sits at 10.5%, which has decreased by 2.69% from 13.19% last quarter.

This quarter, Oasis Petroleum experienced an increase in earnings per share, which was 1.22 in Q4 and is now 4.34. Oasis Petroleum does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Hoegh LNG Partners has reported Q1 earnings per share at 0.61, which has increased by 32.61% compared to Q4, which was 0.46. Its most recent dividend yield is at 11.1%, which has increased by 0.3% from 10.8% in the previous quarter.

DHT Holdings's earnings per share for Q1 sits at 0.07, whereas in Q4, they were at 0.04. The company's most recent dividend yield sits at 2.61%, which has decreased by 0.74% from 3.35% last quarter.

Adams Resources & Energy's earnings per share for Q1 sits at -0.61, whereas in Q4, they were at 0.65. Most recently, the company reported a dividend yield of 3.6%, which has increased by 0.2% from last quarter's yield of 3.4%.

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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