What is a Value Stock?
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company’s future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.
Benzinga Insights has compiled a list of value stocks in the energy sector that may be worth watching:
- Kimbell Royalty Partners (NYSE:KRP) – P/E: 8.22
- Centrus Energy (AMEX:LEU) – P/E: 9.76
- EQT (NYSE:EQT) – P/E: 6.58
- Phillips 66 (NYSE:PSX) – P/E: 4.02
- Epsilon Energy (NASDAQ:EPSN) – P/E: 3.36
This quarter, Kimbell Royalty Partners experienced a decrease in earnings per share, which was $0.59 in Q3 and is now $0.48. Most recently, the company reported a dividend yield of 13.16%, which has increased by 3.07% from last quarter’s yield of 10.09%.
This quarter, Centrus Energy experienced an increase in earnings per share, which was $-0.42 in Q3 and is now $1.42. EQT saw a decrease in earnings per share from 1.04 in Q3 to $0.42 now. Its most recent dividend yield is at 2.01%, which has increased by 0.59% from 1.42% in the previous quarter.
Phillips 66 has reported Q4 earnings per share at $4.0, which has decreased by 38.08% compared to Q3, which was 6.46. The company’s most recent dividend yield sits at 4.11%, which has decreased by 0.05% from 4.16% last quarter.
Epsilon Energy saw a decrease in earnings per share from 0.44 in Q2 to $0.41 now. The company’s most recent dividend yield sits at 4.28%, which has increased by 0.82% from 3.46% last 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.
