What Defines 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 utilities sector that may be worth watching:
- UGI (NYSE:UGI) - P/E: 6.09
- Suburban Propane Partners (NYSE:SPH) - P/E: 7.07
- Pampa Energia (NYSE:PAM) - P/E: 3.51
- OGE Energy (NYSE:OGE) - P/E: 8.59
- Smart Powerr (NASDAQ:CREG) - P/E: 2.06
UGI saw an increase in earnings per share from 0.93 in Q1 to $1.91 now. The company's most recent dividend yield sits at 4.06%, which has increased by 1.05% from 3.01% last quarter.
Most recently, Suburban Propane Partners reported earnings per share at $2.74, whereas in Q1 earnings per share sat at $0.34. The company's most recent dividend yield sits at 7.57%, which has decreased by 0.92% from 8.49% last quarter.
Pampa Energia has reported Q1 earnings per share at $1.79, which has increased by 155.71% compared to Q4, which was 0.7. This quarter, OGE Energy experienced an increase in earnings per share, which was $0.27 in Q4 and is now $1.39. The company's most recent dividend yield sits at 4.56%, which has decreased by 0.22% from 4.78% last quarter.
Smart Powerr has reported Q3 earnings per share at $-0.08, which has increased by 50.0% compared to Q2, which was -0.16.
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.
