Market Overview

A Look Into Utilities 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.

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

  1. Kenon Hldgs (NYSE: KEN) - P/E: 4.06
  2. Pampa Energia (NYSE: PAM) - P/E: 0.04
  3. Central Puerto (NYSE: CEPU) - P/E: 3.21
  4. Enel Americas (NYSE: ENIA) - P/E: 7.73
  5. Cia Paranaense De Energia (NYSE: ELP) - P/E: 5.57

Kenon Hldgs saw a decrease in earnings per share from 0.28 in Q1 to 0.02 now. Kenon Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Pampa Energia saw a decrease in earnings per share from 0.21 in Q1 to 0.06 now. Pampa Energia does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Central Puerto saw an increase in earnings per share from 0.01 in Q1 to 0.02 now. Central Puerto does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Enel Americas has reported Q2 earnings per share at 0.0, which has decreased by 100.0% compared to Q1, which was 0.0. Its most recent dividend yield is at 11.07%, which has increased by 9.39% from 1.68% in the previous quarter.

Most recently, Cia Paranaense De Energia reported earnings per share at 1.09, whereas in Q1 earnings per share sat at 0.42. Its most recent dividend yield is at 6.26%, which has increased by 4.11% from 2.15% in the previous 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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