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.
Benzinga Insights has compiled a list of value stocks in the energy sector that may be worth watching:
- Dorian LPG LPG - P/E: 8.68
- BP Midstream Partners BPMP - P/E: 7.74
- Overseas Shipholding Gr OSG - P/E: 4.51
- Global Partners GLP - P/E: 7.85
- Green Plains Partners GPP - P/E: 6.24
Dorian LPG saw an increase in earnings per share from -0.07 in Q2 to 0.7 now. Dorian LPG does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
BP Midstream Partners saw a decrease in earnings per share from 0.42 in Q3 to 0.37 now. Its most recent dividend yield is at 10.78%, which has decreased by 3.0% from 13.78% in the previous quarter.
Overseas Shipholding Gr has reported Q3 earnings per share at -0.01, which has decreased by 114.29% compared to Q2, which was 0.07. Overseas Shipholding Gr does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Global Partners reported earnings per share at 0.47, whereas in Q2 earnings per share sat at 2.21. The company's most recent dividend yield sits at 11.65%, which has decreased by 2.32% from 13.97% last quarter.
Green Plains Partners has been featured as a value stock. Green Plains Partners's Q4 EPS sits at 0.44, which has not changed since last quarter (Q3). Most recently, the company reported a dividend yield of 5.0%, which has decreased by 1.0% from last quarter's yield of 6.0%.
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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