A Look Into Energy Sector Value Stocks

The Meaning Behind 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 energy sector:

  1. Patterson-UTI Energy PTEN - P/E: 8.54
  2. Exxon Mobil XOM - P/E: 7.28
  3. Scorpio Tankers STNG - P/E: 3.13
  4. YPF YPF - P/E: 2.46
  5. Ranger Oil ROCC - P/E: 2.85

Patterson-UTI Energy looks to be undervalued. It possesses an EPS of $0.46, which has not changed since last quarter (Q4). Its most recent dividend yield is at 2.74%, which has increased by 0.77% from 1.97% in the previous quarter.

This quarter, Exxon Mobil experienced a decrease in earnings per share, which was $3.4 in Q4 and is now $2.83. Most recently, the company reported a dividend yield of 3.12%, which has decreased by 0.09% from last quarter's yield of 3.21%.

This quarter, Scorpio Tankers experienced a decrease in earnings per share, which was $4.24 in Q4 and is now $3.31. The company's most recent dividend yield sits at 1.91%, which has increased by 0.59% from 1.32% last quarter.

Most recently, YPF reported earnings per share at $0.87, whereas in Q4 earnings per share sat at $1.19. Most recently, the company reported a dividend yield of 1.0%, which has increased by 0.47% from last quarter's yield of 0.53%.

Most recently, Ranger Oil reported earnings per share at $4.31, whereas in Q4 earnings per share sat at $4.95. The company's most recent dividend yield sits at 0.78%, which has increased by 0.08% from 0.7% last quarter.

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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