Understanding Value Stocks
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.
The following stocks are considered to be notable value stocks in the utilities sector:
- NRG Energy NRG - P/E: 5.3
- OPAL Fuels OPAL - P/E: 5.1
- Otter Tail OTTR - P/E: 8.16
- Suburban Propane Partners SPH - P/E: 7.32
- UGI UGI - P/E: 8.13
NRG Energy's earnings per share for Q3 sits at $0.29, whereas in Q2, they were at 2.16. Most recently, the company reported a dividend yield of 3.44%, which has decreased by 0.48% from last quarter's yield of 3.92%.
This quarter, OPAL Fuels experienced a decrease in earnings per share, which was $0.08 in Q2 and is now $-0.06. Otter Tail's earnings per share for Q3 sits at $2.01, whereas in Q2, they were at 2.05. Its most recent dividend yield is at 2.4%, which has increased by 0.05% from 2.35% in the previous quarter.
This quarter, Suburban Propane Partners experienced a decrease in earnings per share, which was $-0.04 in Q3 and is now $-0.86. Most recently, the company reported a dividend yield of 7.97%, which has decreased by 0.21% from last quarter's yield of 8.18%.
Most recently, UGI reported earnings per share at $0.0, whereas in Q3 earnings per share sat at $0.06. Its most recent dividend yield is at 3.9%, which has increased by 0.55% from 3.35% 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.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.