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.
Below is a list of notable value stocks in the utilities sector:
- Energy Co of Minas Gerais CIG - P/E: 5.83
- UGI UGI - P/E: 7.25
- China Recycling Energy CREG - P/E: 3.4
- Brookfield Renewable BEPC - P/E: 6.77
- NRG Energy NRG - P/E: 4.09
Energy Co of Minas Gerais's earnings per share for Q3 sits at $0.05, whereas in Q2, they were at 0.22. This quarter, UGI experienced an increase in earnings per share, which was $-0.34 in Q4 and is now $0.93. Most recently, the company reported a dividend yield of 3.01%, which has decreased by 0.04% from last quarter's yield of 3.05%.
This quarter, China Recycling Energy experienced an increase in earnings per share, which was $-0.16 in Q2 and is now $-0.08. Brookfield Renewable saw an increase in earnings per share from -0.21 in Q3 to $-0.12 now. Its most recent dividend yield is at 3.8%, which has increased by 0.9% from 2.9% in the previous quarter.
NRG Energy's earnings per share for Q4 sits at $-1.74, whereas in Q3, they were at 6.6. The company's most recent dividend yield sits at 3.63%, which has increased by 0.5% from 3.13% last quarter.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.
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