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.
Benzinga Insights has compiled a list of value stocks in the energy sector that may be worth watching:
- California Resources CRC - P/E: 4.49
- Shell SHEL - P/E: 5.74
- PBF Energy PBF - P/E: 2.66
- TotalEnergies TTE - P/E: 6.47
- Gran Tierra Energy GTE - P/E: 3.33
California Resources has been featured as a value stock. California Resources's Q2 EPS sits at $1.13, which has not changed since last quarter (Q1). Most recently, the company reported a dividend yield of 1.54%, which has increased by 0.01% from last quarter's yield of 1.53%.
This quarter, Shell experienced an increase in earnings per share, which was $2.4 in Q1 and is now $3.08. Its most recent dividend yield is at 3.89%, which has increased by 0.38% from 3.51% in the previous quarter.
PBF Energy saw an increase in earnings per share from 0.35 in Q1 to $10.58 now. Most recently, the company reported a dividend yield of 4.15%, which has increased by 0.42% from last quarter's yield of 3.73%.
TotalEnergies has reported Q2 earnings per share at $3.75, which has increased by 10.29% compared to Q1, which was 3.4. The company's most recent dividend yield sits at 5.09%, which has decreased by 0.25% from 5.34% last quarter.
Most recently, Gran Tierra Energy reported earnings per share at $0.14, whereas in Q1 earnings per share sat at $0.04.
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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