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.
The following stocks are considered to be notable value stocks in the energy sector:
- SilverBow Resources (NYSE:SBOW) - P/E: 4.64
- Callon Petroleum (NYSE:CPE) - P/E: 8.12
- Vermilion Energy (NYSE:VET) - P/E: 3.98
- Green Plains Partners (NASDAQ:GPP) - P/E: 8.11
- China Petroleum (NYSE:SNP) - P/E: 3.61
Most recently, SilverBow Resources reported earnings per share at $7.12, whereas in Q3 earnings per share sat at $-2.85. Callon Petroleum's earnings per share for Q4 sits at $2.66, whereas in Q3, they were at 2.93. Vermilion Energy has reported Q4 earnings per share at $1.68, which has increased by 333.33% compared to Q3, which was -0.72. The company's most recent dividend yield sits at 3.65%, which has decreased by 25.22% from 28.87% last quarter.
Green Plains Partners's earnings per share for Q4 sits at $0.42, whereas in Q3, they were at 0.4. Its most recent dividend yield is at 11.91%, which has decreased by 0.43% from 12.34% in the previous quarter.
China Petroleum has reported Q3 earnings per share at $2.64, which has increased by 0.38% compared to Q2, which was 2.63. Its most recent dividend yield is at 10.47%, which has increased by 3.82% from 6.65% 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.
