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.
The following stocks are considered to be notable value stocks in the utilities sector:
- Enel Chile (NYSE:ENIC) – P/E: 2.88
- TransAlta (NYSE:TAC) – P/E: 5.09
- Pampa Energia (NYSE:PAM) – P/E: 5.93
- Brookfield Renewable (NYSE:BEPC) – P/E: 3.08
- Suburban Propane Partners (NYSE:SPH) – P/E: 8.9
Enel Chile’s earnings per share for Q3 sits at $0.14, whereas in Q2, they were at 0.1. Its most recent dividend yield is at 64.82%, which has decreased by 1.55% from 66.37% in the previous quarter.
Most recently, TransAlta reported earnings per share at $1.05, whereas in Q2 earnings per share sat at $0.17. The company’s most recent dividend yield sits at 2.08%, which has decreased by 0.08% from 2.16% last quarter.
Most recently, Pampa Energia reported earnings per share at $2.8, whereas in Q2 earnings per share sat at $3.01. Brookfield Renewable saw a decrease in earnings per share from -0.1 in Q2 to $-0.14 now. Its most recent dividend yield is at 5.42%, which has increased by 0.65% from 4.77% in the previous quarter.
Suburban Propane Partners’s earnings per share for Q4 sits at $-0.33, whereas in Q3, they were at -0.08. The company’s most recent dividend yield sits at 7.71%, which has decreased by 0.99% from 8.7% last quarter.
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.
