Overview Of Value Stocks In The Utilities Sector

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.

Below is a list of notable value stocks in the utilities sector:

  1. Brookfield Renewable BEPC - P/E: 3.86
  2. Enel Chile ENIC - P/E: 2.36
  3. Clearway Energy CWEN - P/E: 6.02
  4. Suburban Propane Partners SPH - P/E: 6.09
  5. Pampa Energia PAM - P/E: 4.17

This quarter, Brookfield Renewable experienced an increase in earnings per share, which was $-0.25 in Q3 and is now $-0.16. The company's most recent dividend yield sits at 4.32%, which has increased by 0.16% from 4.16% last quarter.

Enel Chile's earnings per share for Q4 sits at $0.86, whereas in Q3, they were at 0.08. Its most recent dividend yield is at 1.41%, which has decreased by 35.63% from 37.04% in the previous quarter.

Most recently, Clearway Energy reported earnings per share at $0.1, whereas in Q3 earnings per share sat at $0.28. The company's most recent dividend yield sits at 4.53%, which has increased by 0.34% from 4.19% last quarter.

Suburban Propane Partners's earnings per share for Q1 sits at $0.71, whereas in Q4, they were at -0.86. Its most recent dividend yield is at 8.28%, which has increased by 0.31% from 7.97% in the previous quarter.

This quarter, Pampa Energia experienced a decrease in earnings per share, which was $3.23 in Q3 and is now $2.05.

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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