A Look Into Utilities Sector Value Stocks

A Look Into Utilities Sector Value Stocks

The Meaning Behind 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 utilities sector that may be worth watching:

  1. Kenon Hldgs KEN - P/E: 3.97
  2. PG&E PCG - P/E: 4.62
  3. Energy Co of Minas Gerais CIG - P/E: 8.3
  4. China Recycling Energy CREG - P/E: 3.37
  5. NRG Energy NRG - P/E: 9.35

This quarter, Kenon Hldgs experienced a decrease in earnings per share, which was 3.34 in Q1 and is now 3.2. Kenon Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

PG&E has reported Q2 earnings per share at 0.27, which has increased by 17.39% compared to Q1, which was 0.23. The company's most recent dividend yield sits at 3.06%, which has decreased by 0.04% from 3.1% last quarter.

Most recently, Energy Co of Minas Gerais reported earnings per share at 0.22, whereas in Q1 earnings per share sat at 0.05. Energy Co of Minas Gerais does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, China Recycling Energy experienced a decrease in earnings per share, which was -0.09 in Q1 and is now -0.16. China Recycling Energy does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

NRG Energy saw an increase in earnings per share from -0.23 in Q1 to 4.4 now. The company's most recent dividend yield sits at 3.33%, which has decreased by 0.03% from 3.36% 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.

Posted In: BZI-VSNews