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.
Below is a list of notable value stocks in the energy sector:
- Crescent Point Energy CPG - P/E: 1.18
- Oasis Petroleum OAS - P/E: 2.31
- GasLog Partners GLOP - P/E: 4.02
- BP Midstream Partners BPMP - P/E: 8.48
- Barnwell Industries BRN - P/E: 3.74
Crescent Point Energy saw an increase in earnings per share from 0.14 in Q1 to 0.16 now. The company's most recent dividend yield sits at 0.23%, which has increased by 0.03% from 0.2% last quarter.
This quarter, Oasis Petroleum experienced a decrease in earnings per share, which was 4.34 in Q1 and is now 2.76. Oasis Petroleum does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, GasLog Partners reported earnings per share at 0.1, whereas in Q1 earnings per share sat at 0.5. Most recently, the company reported a dividend yield of 0.76%, which has decreased by 0.62% from last quarter's yield of 1.38%.
BP Midstream Partners has reported Q2 earnings per share at 0.37, which has decreased by 5.13% compared to Q1, which was 0.39. Most recently, the company reported a dividend yield of 9.8%, which has decreased by 1.05% from last quarter's yield of 10.85%.
Barnwell Industries's earnings per share for Q3 sits at 0.59, whereas in Q2, they were at -0.1. Barnwell Industries does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
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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