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Market Overview

A Look Into Utilities Sector Value Stocks

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What is 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.

Below is a list of notable value stocks in the utilities sector:

  1. Cia Paranaense De Energia (NYSE:ELP) - P/E: 5.13
  2. Kenon Hldgs (NYSE:KEN) - P/E: 4.78
  3. Central Puerto (NYSE:CEPU) - P/E: 4.43
  4. Pampa Energia (NYSE:PAM) - P/E: 0.2
  5. Atlantic Power (NYSE:AT) - P/E: 4.56

Cia Paranaense De Energia saw an increase in earnings per share from 0.46 in Q3 to 0.72 now. 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%.

Kenon Hldgs saw an increase in earnings per share from 0.02 in Q2 to 1.09 now. Kenon Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Central Puerto experienced a decrease in earnings per share, which was 0.02 in Q3 and is now 0.01. Central Puerto does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Pampa Energia saw an increase in earnings per share from 0.05 in Q3 to 0.41 now. Pampa Energia does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Atlantic Power's earnings per share for Q4 sits at 0.3, whereas in Q3, they were at 0.15. Its most recent dividend yield is at 11.16%, which has increased by 5.83% from 5.33% 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.

 

Related Articles (AT + CEPU)

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Posted-In: BZI-VSEarnings News Dividends

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