What are Value Stocks?
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:
- Cia Paranaense De Energia (NYSE: ELP) – P/E: 5.43
- Central Puerto (NYSE: CEPU) – P/E: 3.53
- NRG Energy (NYSE: NRG) – P/E: 1.96
- Kenon Hldgs (NYSE: KEN) – P/E: 4.11
- Spark Energy (NASDAQ: SPKE) – P/E: 5.26
Cia Paranaense De Energia’s earnings per share for Q2 sits at 1.09, whereas in Q1, they were at 0.42. The company’s most recent dividend yield sits at 6.26%, which has increased by 4.11% from 2.15% last quarter.
This quarter, Central Puerto experienced an increase in earnings per share, which was 0.01 in Q1 and is now 0.02. Central Puerto does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
NRG Energy has reported Q2 earnings per share at 1.27, which has increased by 159.18% compared to Q1, which was 0.49. The company’s most recent dividend yield sits at 3.55%, which has decreased by 0.4% from 3.95% last quarter.
Kenon Hldgs’s earnings per share for Q2 sits at 0.02, whereas in Q1, they were at 0.28. Kenon Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Spark Energy saw an increase in earnings per share from 0.2 in Q1 to 0.62 now. The company’s most recent dividend yield sits at 10.35%, which has increased by 0.18% from 10.17% 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.
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