Market Overview

Overview Of Value Stocks In The Utilities Sector

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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 utilities sector:

  1. Cia Paranaense De Energia (NYSE: ELP) - P/E: 6.05
  2. Kenon Hldgs (NYSE: KEN) - P/E: 4.4
  3. Central Puerto (NYSE: CEPU) - P/E: 3.7
  4. Pampa Energia (NYSE: PAM) - P/E: 0.05
  5. NRG Energy (NYSE: NRG) - P/E: 2.0

Most recently, Cia Paranaense De Energia reported earnings per share at 0.46, whereas in Q2 earnings per share sat at 1.09. Most recently, the company reported a dividend yield of 6.26%, which has increased by 4.11% from last quarter’s yield of 2.15%.

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.

Central Puerto looks to be undervalued. It possesses an EPS of 0.02, which has not changed since last quarter (Q2). Central Puerto does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Pampa Energia’s earnings per share for Q3 sits at 0.05, whereas in Q2, they were at 0.06. Pampa Energia does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

NRG Energy’s earnings per share for Q3 sits at 1.1, whereas in Q2, they were at 1.27. Its most recent dividend yield is at 3.55%, which has decreased by 0.4% from 3.95% 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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Posted-In: Earnings News Penny Stocks Dividends Small Cap