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.
Benzinga Insights has compiled a list of value stocks in the utilities sector that may be worth watching:
- Enel Americas ENIA - P/E: 8.04
- Suburban Propane Partners SPH - P/E: 7.82
- Companhia De Saneamento SBS - P/E: 9.49
- Kenon Hldgs KEN - P/E: 4.07
- UGI UGI - P/E: 9.92
Most recently, Enel Americas reported earnings per share at 0.0, whereas in Q2 earnings per share sat at 0.0. Its most recent dividend yield is at 12.11%, which has increased by 7.85% from 4.26% in the previous quarter.
Suburban Propane Partners has reported Q4 earnings per share at -0.19, which has decreased by 18.75% compared to Q3, which was -0.16. Its most recent dividend yield is at 8.14%, which has decreased by 0.42% from 8.56% in the previous quarter.
Companhia De Saneamento's earnings per share for Q3 sits at 0.13, whereas in Q2, they were at 0.21. Its most recent dividend yield is at 2.94%, which has decreased by 0.83% from 3.77% in the previous quarter.
Kenon Hldgs saw a decrease in earnings per share from 3.34 in Q1 to 3.2 now. Kenon Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
UGI has reported Q3 earnings per share at 0.13, which has decreased by 93.47% compared to Q2, which was 1.99. Its most recent dividend yield is at 2.96%, which has decreased by 0.16% from 3.12% 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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