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.
Below is a list of notable value stocks in the energy sector:
- PBF Logistics PBFX - P/E: 4.84
- Enservco ENSV - P/E: 1.11
- PetroChina Co PTR - P/E: 7.76
- Hoegh LNG Partners HMLP - P/E: 2.42
- Oasis Midstream Partners OMP - P/E: 5.56
PBF Logistics saw an increase in earnings per share from 0.61 in Q1 to 0.64 now. Most recently, the company reported a dividend yield of 9.15%, which has increased by 0.96% from last quarter's yield of 8.19%.
Most recently, Enservco reported earnings per share at -0.14, whereas in Q1 earnings per share sat at -0.24. Enservco does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
PetroChina Co saw an increase in earnings per share from 0.01 in Q4 to 0.02 now. The company's most recent dividend yield sits at 6.68%, which has decreased by 1.09% from 7.77% last quarter.
Hoegh LNG Partners has reported Q2 earnings per share at -0.04, which has decreased by 106.56% compared to Q1, which was 0.61. The company's most recent dividend yield sits at 0.22%, which has decreased by 10.88% from 11.1% last quarter.
Oasis Midstream Partners has been featured as a value stock. Oasis Midstream Partners's Q2 EPS sits at 0.72, which has not changed since last quarter (Q1). The company's most recent dividend yield sits at 10.28%, which has decreased by 0.22% from 10.5% 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.
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