Overview Of Value Stocks In The Utilities Sector

 

What are Value Stocks?

A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.

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

  1. NRG Energy NRG - P/E: 4.01
  2. China Recycling Energy CREG - P/E: 1.98
  3. Pampa Energia PAM - P/E: 2.61
  4. UGI UGI - P/E: 6.47
  5. Kenon Hldgs KEN - P/E: 3.52

NRG Energy saw an increase in earnings per share from 4.4 in Q2 to 6.6 now. Most recently, the company reported a dividend yield of 3.13%, which has decreased by 0.2% from last quarter's yield of 3.33%.

This quarter, China Recycling Energy experienced an increase in earnings per share, which was -0.16 in Q2 and is now -0.08. Most recently, Pampa Energia reported earnings per share at 2.36, whereas in Q2 earnings per share sat at 1.94. Pampa Energia does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, UGI experienced a decrease in earnings per share, which was 0.13 in Q3 and is now -0.34. Most recently, the company reported a dividend yield of 3.05%, which has increased by 0.09% from last quarter's yield of 2.96%.

Kenon Hldgs has reported Q3 earnings per share at 3.45, which has increased by 7.81% compared to Q2, which was 3.2.

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