Understanding 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 utilities sector that may be worth watching:
- Clearway Energy CWEN - P/E: 6.73
- NRG Energy NRG - P/E: 2.89
- Kenon Hldgs KEN - P/E: 1.27
- Via Renewables VIA - P/E: 7.87
- OGE Energy OGE - P/E: 7.53
Clearway Energy has reported Q2 earnings per share at $-4.37, which has decreased by 1460.71% compared to Q1, which was -0.28. Its most recent dividend yield is at 3.84%, which has decreased by 0.67% from 4.51% in the previous quarter.
NRG Energy saw a decrease in earnings per share from 7.17 in Q1 to $2.16 now. The company's most recent dividend yield sits at 3.92%, which has increased by 0.39% from 3.53% last quarter.
Kenon Hldgs has reported Q2 earnings per share at $4.92, which has decreased by 58.52% compared to Q1, which was 11.86. Via Renewables saw a decrease in earnings per share from 0.7 in Q1 to $0.18 now. Its most recent dividend yield is at 9.76%, which has increased by 0.61% from 9.15% in the previous quarter.
OGE Energy's earnings per share for Q2 sits at $0.36, whereas in Q1, they were at 1.39. Most recently, the company reported a dividend yield of 4.25%, which has increased by 0.14% from last quarter's yield of 4.11%.
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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