The Meaning Behind 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.
Below is a list of notable value stocks in the energy sector:
- Shell SHEL - P/E: 5.72
- ConocoPhillips COP - P/E: 9.57
- Petrobras Brasileiro PBR - P/E: 2.96
- VAALCO Energy EGY - P/E: 3.59
- Ranger Energy Services RNGR - P/E: 6.62
Most recently, Shell reported earnings per share at $3.08, whereas in Q1 earnings per share sat at $2.4. The company's most recent dividend yield sits at 3.89%, which has increased by 0.38% from 3.51% last quarter.
This quarter, ConocoPhillips experienced an increase in earnings per share, which was $3.27 in Q1 and is now $3.91. Most recently, Petrobras Brasileiro reported earnings per share at $1.68, whereas in Q1 earnings per share sat at $1.32. VAALCO Energy saw an increase in earnings per share from 0.36 in Q1 to $0.52 now. The company's most recent dividend yield sits at 2.81%, which has increased by 0.82% from 1.99% last quarter.
Most recently, Ranger Energy Services reported earnings per share at $-0.02, whereas in Q1 earnings per share sat at $-0.31.
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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