A Look Into Energy Sector Value Stocks

What Defines 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.

The following stocks are considered to be notable value stocks in the energy sector:

  1. China Petroleum SNP - P/E: 3.98
  2. GasLog Partners GLOP - P/E: 3.87
  3. Oasis Petroleum OAS - P/E: 2.84
  4. Vermilion Energy VET - P/E: 2.58
  5. NACCO Industries NC - P/E: 6.62

China Petroleum saw an increase in earnings per share from 2.63 in Q2 to 2.64 now. The company's most recent dividend yield sits at 10.47%, which has increased by 3.82% from 6.65% last quarter.

GasLog Partners saw an increase in earnings per share from 0.1 in Q2 to 0.34 now. Its most recent dividend yield is at 0.73%, which has decreased by 0.03% from 0.76% in the previous quarter.

Oasis Petroleum has reported Q3 earnings per share at 3.16, which has increased by 14.49% compared to Q2, which was 2.76. Its most recent dividend yield is at 1.75%, which has increased by 0.05% from 1.7% in the previous quarter.

Vermilion Energy has reported Q3 earnings per share at -0.72, which has decreased by 131.72% compared to Q2, which was 2.27. Its most recent dividend yield is at 28.87%, which has increased by 14.13% from 14.74% in the previous quarter.

NACCO Industries's earnings per share for Q3 sits at 3.47, whereas in Q2, they were at 0.91. Its most recent dividend yield is at 2.4%, which has decreased by 0.48% from 2.88% 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.

Posted In: BZI-VSNews