Market Overview

A Look Into Energy Sector Value Stocks

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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.

Below is a list of notable value stocks in the energy sector:

  1. Green Plains Partners (NASDAQ: GPP) - P/E: 4.47
  2. DHT Holdings (NYSE: DHT) - P/E: 3.16
  3. Holly Energy Partners (NYSE: HEP) - P/E: 6.58
  4. Shell Midstream Partners (NYSE: SHLX) - P/E: 7.1
  5. North American (NYSE: NOA) - P/E: 5.93

Green Plains Partners saw a decrease in earnings per share from 0.44 in Q1 to 0.43 now. The company’s most recent dividend yield sits at 6.23%, which has decreased by 3.67% from 9.9% last quarter.

Most recently, DHT Holdings reported earnings per share at 0.81, whereas in Q1 earnings per share sat at 0.44. The company’s most recent dividend yield sits at 33.51%, which has increased by 10.06% from 23.45% last quarter.

This quarter, Holly Energy Partners experienced a decrease in earnings per share, which was 0.48 in Q1 and is now 0.4. Its most recent dividend yield is at 10.09%, which has decreased by 0.9% from 10.99% in the previous quarter.

Most recently, Shell Midstream Partners reported earnings per share at 0.32, whereas in Q1 earnings per share sat at 0.36. Most recently, the company reported a dividend yield of 15.53%, which has decreased by 0.29% from last quarter’s yield of 15.82%.

North American saw a decrease in earnings per share from 0.52 in Q1 to 0.32 now. The company’s most recent dividend yield sits at 2.05%, which has decreased by 0.37% from 2.42% 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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Posted-In: Earnings News Dividends