What Defines a Value Stock?
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 energy sector that may be worth watching:
- Star Group SGU - P/E: 7.95
- CrossAmerica Partners CAPL - P/E: 6.64
- North American NOA - P/E: 8.55
- Delek Logistics Partners DKL - P/E: 8.45
- Noble Midstream Partners NBLX - P/E: 9.73
Star Group saw an increase in earnings per share from -0.55 in Q4 to 0.74 now. Its most recent dividend yield is at 5.6%, which has increased by 0.1% from 5.5% in the previous quarter.
CrossAmerica Partners saw a decrease in earnings per share from 0.56 in Q3 to 0.24 now. The company's most recent dividend yield sits at 11.99%, which has decreased by 1.78% from 13.77% last quarter.
North American's earnings per share for Q4 sits at 0.28, whereas in Q3, they were at 0.2. The company's most recent dividend yield sits at 1.54%, which has decreased by 0.38% from 1.92% last quarter.
Delek Logistics Partners's earnings per share for Q4 sits at 0.94, whereas in Q3, they were at 1.26. Most recently, the company reported a dividend yield of 9.53%, which has decreased by 4.15% from last quarter's yield of 13.68%.
This quarter, Noble Midstream Partners experienced an increase in earnings per share, which was 0.4 in Q3 and is now 0.44. Its most recent dividend yield is at 5.94%, which has decreased by 2.83% from 8.77% in the previous 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.
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