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:
- Peabody Energy (NYSE:BTU) - P/E: 8.63
- YPF (NYSE:YPF) - P/E: 7.17
- Diamondback Energy (NASDAQ:FANG) - P/E: 9.97
- Dynagas LNG Partners (NYSE:DLNG) - P/E: 3.73
- Magnolia Oil & Gas (NYSE:MGY) - P/E: 9.81
Peabody Energy has reported Q1 earnings per share at $-0.87, which has decreased by 122.31% compared to Q4, which was 3.9. The company's most recent dividend yield sits at 3.67%, which has increased by 0.67% from 3.0% last quarter.
This quarter, YPF experienced a decrease in earnings per share, which was $1.0 in Q4 and is now $0.64. The company's most recent dividend yield sits at 1.0%, which has increased by 0.47% from 0.53% last quarter.
Diamondback Energy saw an increase in earnings per share from 3.63 in Q4 to $5.2 now. This quarter, Dynagas LNG Partners experienced a decrease in earnings per share, which was $0.24 in Q3 and is now $0.23. Most recently, the company reported a dividend yield of 11.0%, which has increased by 4.95% from last quarter's yield of 6.05%.
Magnolia Oil & Gas has reported Q1 earnings per share at $0.9, which has increased by 9.76% compared to Q4, which was 0.82. Its most recent dividend yield is at 1.78%, which has increased by 0.64% from 1.14% 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.
