Skip to main content

Market Overview

5 Value Stocks To Watch In The Utilities Sector

Share:

What are 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.

The following stocks are considered to be notable value stocks in the utilities sector:

  1. Central Puerto (NYSE:CEPU) - P/E: 6.83
  2. NRG Energy (NYSE:NRG) - P/E: 2.31
  3. Pampa Energia (NYSE:PAM) - P/E: 0.05
  4. China Recycling Energy (NASDAQ:CREG) - P/E: 2.68
  5. Kenon Hldgs (NYSE:KEN) - P/E: 4.59

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.

NRG Energy saw a decrease in earnings per share from 1.27 in Q2 to 1.1 now. Most recently, the company reported a dividend yield of 3.62%, which has increased by 0.07% from last quarter's yield of 3.55%.

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.

China Recycling Energy's earnings per share for Q3 sits at -0.25, whereas in Q2, they were at 0.43. China Recycling Energy does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Kenon Hldgs's earnings per share for Q3 sits at 1.09, whereas in Q2, they were at 0.02. Kenon Hldgs 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.

 

Related Articles (CREG + CEPU)

View Comments and Join the Discussion!

Posted-In: BZI-VSEarnings News Dividends

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com