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 utilities sector:
- Brookfield Renewable (NYSE:BEPC) – P/E: 7.81
- OGE Energy (NYSE:OGE) – P/E: 8.56
- NRG Energy (NYSE:NRG) – P/E: 4.34
- Clearway Energy (NYSE:CWEN) – P/E: 6.99
- OPAL Fuels (NASDAQ:OPAL) – P/E: 5.5
Brookfield Renewable saw a decrease in earnings per share from -0.03 in Q2 to $-0.25 now. The company’s most recent dividend yield sits at 4.16%, which has increased by 0.98% from 3.18% last quarter.
OGE Energy has reported Q3 earnings per share at $1.31, which has increased by 263.89% compared to Q2, which was 0.36. The company’s most recent dividend yield sits at 4.25%, which has increased by 0.14% from 4.11% last quarter.
NRG Energy’s earnings per share for Q3 sits at $0.29, whereas in Q2, they were at 2.16. The company’s most recent dividend yield sits at 3.44%, which has decreased by 0.48% from 3.92% last quarter.
This quarter, Clearway Energy experienced an increase in earnings per share, which was $-4.37 in Q2 and is now $0.28. Most recently, the company reported a dividend yield of 4.19%, which has increased by 0.35% from last quarter’s yield of 3.84%.
This quarter, OPAL Fuels experienced a decrease in earnings per share, which was $0.08 in Q2 and is now $-0.06.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.
