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Market Overview

A Look Into Energy Sector Value Stocks

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What Defines a Value Stock?

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 energy sector:

  1. Renewable Energy Group (NASDAQ:REGI) - P/E: 6.36
  2. TC Pipelines (NYSE:TCP) - P/E: 8.05
  3. BP Midstream Partners (NYSE:BPMP) - P/E: 7.49
  4. Transportadora de Gas (NYSE:TGS) - P/E: 8.19
  5. Overseas Shipholding Gr (NYSE:OSG) - P/E: 4.64

This quarter, Renewable Energy Group experienced an increase in earnings per share, which was 0.02 in Q2 and is now 0.6. Renewable Energy Group does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, TC Pipelines experienced an increase in earnings per share, which was 0.78 in Q2 and is now 0.9. Most recently, the company reported a dividend yield of 8.39%, which has decreased by 0.31% from last quarter's yield of 8.7%.

Most recently, BP Midstream Partners reported earnings per share at 0.42, whereas in Q2 earnings per share sat at 0.38. The company's most recent dividend yield sits at 10.78%, which has decreased by 3.0% from 13.78% last quarter.

Most recently, Transportadora de Gas reported earnings per share at 0.12, whereas in Q2 earnings per share sat at 0.17. The company's most recent dividend yield sits at 3.71%, which has ('', 'not changed') by 0.0% from 3.71% last quarter.

Overseas Shipholding Gr saw a decrease in earnings per share from 0.07 in Q2 to -0.01 now. Overseas Shipholding Gr 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 (OSG + BPMP)

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Posted-In: BZI-VSEarnings News Dividends

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