What is a Value Stock?
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.
Benzinga Insights has compiled a list of value stocks in the energy sector that may be worth watching:
- Overseas Shipholding Gr OSG - P/E: 4.79
- BP Midstream Partners BPMP - P/E: 5.81
- Euronav EURN - P/E: 2.83
- Teekay LNG Partners TGP - P/E: 8.35
- Shell Midstream Partners SHLX - P/E: 6.2
Most recently, Overseas Shipholding Gr reported earnings per share at 0.07, whereas in Q1 earnings per share sat at 0.28. Overseas Shipholding Gr does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
BP Midstream Partners has reported Q2 earnings per share at 0.38, which has decreased by 2.56% compared to Q1, which was 0.39. The company’s most recent dividend yield sits at 13.78%, which has increased by 0.52% from 13.26% last quarter.
Euronav saw an increase in earnings per share from 1.05 in Q1 to 1.21 now. The company’s most recent dividend yield sits at 19.03%, which has increased by 14.09% from 4.94% last quarter.
Most recently, Teekay LNG Partners reported earnings per share at 0.67, whereas in Q1 earnings per share sat at 0.58. The company’s most recent dividend yield sits at 9.22%, which has increased by 0.2% from 9.02% last 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%.
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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