Market Overview

Overview Of Value Stocks 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. Kenon Hldgs (NYSE:KEN) - P/E: 5.09
  2. Cia Paranaense De Energia (NYSE:ELP) - P/E: 5.6
  3. Central Puerto (NYSE:CEPU) - P/E: 6.29
  4. China Recycling Energy (NASDAQ:CREG) - P/E: 4.16
  5. NRG Energy (NYSE:NRG) - P/E: 2.58

Kenon Hldgs has reported Q3 earnings per share at 1.09, which has increased by 5350.0% compared to Q2, which was 0.02. Kenon Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Cia Paranaense De Energia experienced a decrease in earnings per share, which was 1.09 in Q2 and is now 0.46. Most recently, the company reported a dividend yield of 8.62%, which has increased by 2.36% from last quarter's yield of 6.26%.

Central Puerto has been featured as a value stock. Central Puerto's Q3 EPS sits at 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.

China Recycling Energy saw a decrease in earnings per share from 0.43 in Q2 to -0.25 now. China Recycling Energy does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, NRG Energy experienced a decrease in earnings per share, which was 1.27 in Q2 and is now 1.1. Most recently, the company reported a dividend yield of 3.2%, which has decreased by 0.42% from last quarter's yield of 3.62%.

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