Market Overview

Overview Of Value Stocks In The Utilities Sector

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What is a Value Stock?

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. Spark Energy (NASDAQ: SPKE) - P/E: 5.35
  2. Pampa Energia (NYSE: PAM) - P/E: 0.04
  3. Enel Americas (NYSE: ENIA) - P/E: 7.42
  4. Central Puerto (NYSE: CEPU) - P/E: 3.69
  5. NRG Energy (NYSE: NRG) - P/E: 2.14

This quarter, Spark Energy experienced an increase in earnings per share, which was 0.2 in Q1 and is now 0.62. Its most recent dividend yield is at 10.35%, which has increased by 0.18% from 10.17% in the previous quarter.

Pampa Energia has reported Q2 earnings per share at 0.06, which has decreased by 71.43% compared to Q1, which was 0.21. Pampa Energia does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Enel Americas experienced a decrease in earnings per share, which was 0.0 in Q1 and is now 0.0. Enel Americas does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Central Puerto looks to be undervalued. It possesses an EPS of 0.01, which has not changed since last quarter (Q4). Central Puerto does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

NRG Energy has reported Q2 earnings per share at 1.27, which has increased by 159.18% compared to Q1, which was 0.49. The company’s most recent dividend yield sits at 3.55%, which has decreased by 0.4% from 3.95% 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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