The Meaning Behind Value Stocks
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company’s future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labeled as a value stock.
The following stocks are considered to be notable value stocks in the energy sector:
- Black Stone Minerals BSM - P/E: 9.51
- North European Oil NRT - P/E: 5.53
- CNX Midstream Partners CNXM - P/E: 4.71
- Enterprise Prods Partners EPD - P/E: 8.91
- Talos Energy TALO - P/E: 4.89
Black Stone Minerals saw a decrease in earnings per share from 0.34 in Q1 to -0.07 now. Its most recent dividend yield is at 9.45%, which has increased by 3.78% from 5.67% in the previous quarter.
North European Oil looks to be undervalued. It possesses an EPS of 0.11, which has not changed since last quarter (Q2). Most recently, the company reported a dividend yield of 13.88%, which has increased by 1.05% from last quarter’s yield of 12.83%.
This quarter, CNX Midstream Partners experienced a decrease in earnings per share, which was 0.49 in Q1 and is now 0.35. The company’s most recent dividend yield sits at 30.26%, which has increased by 27.47% from 2.79% last quarter.
This quarter, Enterprise Prods Partners experienced a decrease in earnings per share, which was 0.53 in Q1 and is now 0.47. Most recently, the company reported a dividend yield of 10.1%, which has decreased by 3.59% from last quarter’s yield of 13.69%.
Most recently, Talos Energy reported earnings per share at -0.45, whereas in Q1 earnings per share sat at 0.27. Talos Energy does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
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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