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.
Benzinga Insights has compiled a list of value stocks in the energy sector that may be worth watching:
- Green Plains Partners GPP - P/E: 7.61
- Petrobras Brasileiro PBR - P/E: 3.23
- Energy Transfer ET - P/E: 6.94
- Barnwell Industries BRN - P/E: 4.09
- Crescent Point Energy CPG - P/E: 1.14
Green Plains Partners saw a decrease in earnings per share from 0.45 in Q1 to 0.44 now. Its most recent dividend yield is at 3.65%, which has decreased by 0.27% from 3.92% in the previous quarter.
Petrobras Brasileiro saw an increase in earnings per share from 0.01 in Q1 to 1.24 now. Most recently, the company reported a dividend yield of 22.06%, which has increased by 8.4% from last quarter's yield of 13.66%.
This quarter, Energy Transfer experienced a decrease in earnings per share, which was 1.21 in Q1 and is now 0.2. Most recently, the company reported a dividend yield of 6.12%, which has decreased by 1.52% from last quarter's yield of 7.64%.
Barnwell Industries has reported Q3 earnings per share at 0.59, which has increased by 690.0% compared to Q2, which was -0.1. Barnwell Industries does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Crescent Point Energy has reported Q2 earnings per share at 0.16, which has increased by 14.29% compared to Q1, which was 0.14. Its most recent dividend yield is at 0.23%, which has increased by 0.03% from 0.2% 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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