5 Value Stocks In The Utilities Sector

What are 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:

1. Pampa Energia PAM - P/E: 4.35
2. Vistra VST - P/E: 8.38
3. Enel Chile ENIC - P/E: 2.93
4. Brookfield Renewable BEPC - P/E: 6.91
5. Genie Energy GNE - P/E: 7.1

Most recently, Pampa Energia reported earnings per share at $3.01, whereas in Q1 earnings per share sat at $2.56. Vistra has reported Q2 earnings per share at $1.17, which has decreased by 31.58% compared to Q1, which was 1.71. The company's most recent dividend yield sits at 2.95%, which has decreased by 0.58% from 3.53% last quarter.

Enel Chile's earnings per share for Q1 sits at $0.13, whereas in Q4, they were at 0.86. The company's most recent dividend yield sits at 64.82%, which has decreased by 1.55% from 66.37% last quarter.

Brookfield Renewable has reported Q2 earnings per share at $-0.1, which has decreased by 11.11% compared to Q1, which was -0.09. Its most recent dividend yield is at 4.77%, which has increased by 0.58% from 4.19% in the previous quarter.

Genie Energy has reported Q2 earnings per share at $0.45, which has decreased by 16.67% compared to Q1, which was 0.54. The company's most recent dividend yield sits at 2.19%, which has increased by 0.23% from 1.96% 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.