A Look Into Utilities Sector Value Stocks

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.

Benzinga Insights has compiled a list of value stocks in the utilities sector that may be worth watching:

  1. Kenon Hldgs KEN - P/E: 4.48
  2. Clearway Energy CWEN - P/E: 5.55
  3. Enel Chile ENIC - P/E: 2.36
  4. Brookfield Renewable BEPC - P/E: 4.05
  5. Pampa Energia PAM - P/E: 5.04

Kenon Hldgs's earnings per share for Q4 sits at $-15.63, whereas in Q3, they were at 4.65. Most recently, Clearway Energy reported earnings per share at $0.0, whereas in Q4 earnings per share sat at $0.1. Its most recent dividend yield is at 5.09%, which has increased by 0.56% from 4.53% in the previous quarter.

Enel Chile saw a decrease in earnings per share from 0.86 in Q4 to $0.13 now. Its most recent dividend yield is at 1.41%, which has decreased by 35.63% from 37.04% in the previous quarter.

Brookfield Renewable has reported Q1 earnings per share at $-0.09, which has increased by 43.75% compared to Q4, which was -0.16. Most recently, the company reported a dividend yield of 4.19%, which has decreased by 0.13% from last quarter's yield of 4.32%.

Pampa Energia saw an increase in earnings per share from 2.05 in Q4 to $2.56 now.

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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