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.
Benzinga Insights has compiled a list of value stocks in the energy sector that may be worth watching:
- SM Energy SM - P/E: 5.94
- Diamondback Energy FANG - P/E: 6.55
- ConocoPhillips COP - P/E: 9.6
- SandRidge Energy SD - P/E: 4.61
- Martin Midstream Partners MMLP - P/E: 6.07
This quarter, SM Energy experienced an increase in earnings per share, which was $1.98 in Q1 and is now $2.19. Its most recent dividend yield is at 0.7%, which has increased by 0.65% from 0.05% in the previous quarter.
Most recently, Diamondback Energy reported earnings per share at $7.07, whereas in Q1 earnings per share sat at $5.2. ConocoPhillips has reported Q2 earnings per share at $3.91, which has increased by 19.57% compared to Q1, which was 3.27. Most recently, SandRidge Energy reported earnings per share at $1.32, whereas in Q1 earnings per share sat at $0.94. Martin Midstream Partners's earnings per share for Q2 sits at $0.17, whereas in Q1, they were at 0.29. Its most recent dividend yield is at 0.52%, which has increased by 0.15% from 0.37% in the previous 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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