5 Value Stocks To Watch In The Energy Sector


27% profits every 20 days?

This is what Nic Chahine averages with his options 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.


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.

Benzinga Insights has compiled a list of value stocks in the energy sector that may be worth watching:

  1. Ecopetrol (NYSE:EC) - P/E: 3.58
  2. California Resources (NYSE:CRC) - P/E: 4.24
  3. Magnolia Oil & Gas (NYSE:MGY) - P/E: 6.4
  4. Energy Transfer (NYSE:ET) - P/E: 9.5
  5. Green Plains Partners (NASDAQ:GPP) - P/E: 7.44

Ecopetrol has reported Q2 earnings per share at $1.3, which has increased by 58.54% compared to Q1, which was 0.82. The company's most recent dividend yield sits at 7.41%, which has increased by 6.68% from 0.73% last quarter.

California Resources looks to be undervalued. It possesses an EPS of $1.13, which has not changed since last quarter (Q1). The company's most recent dividend yield sits at 1.54%, which has increased by 0.01% from 1.53% last quarter.

Magnolia Oil & Gas saw an increase in earnings per share from 0.9 in Q1 to $1.32 now. Most recently, the company reported a dividend yield of 0.84%, which has decreased by 0.94% from last quarter's yield of 1.78%.

This quarter, Energy Transfer experienced an increase in earnings per share, which was $0.37 in Q1 and is now $0.39. Its most recent dividend yield is at 8.68%, which has increased by 1.48% from 7.2% in the previous quarter.

Green Plains Partners has been featured as a value stock. Green Plains Partners's Q2 EPS sits at $0.44, which has not changed since last quarter (Q1). The company's most recent dividend yield sits at 14.11%, which has increased by 1.64% from 12.47% last 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.


27% profits every 20 days?

This is what Nic Chahine averages with his options 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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Posted In: NewsBZI-VS