5 Value Stocks To Watch In The Utilities Sector

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 utilities sector:

1. China Recycling Energy CREG - P/E: 5.82
2. Central Puerto CEPU - P/E: 5.49
3. Kenon Hldgs KEN - P/E: 2.94
4. Pampa Energia PAM - P/E: 0.21
5. Suburban Propane Partners SPH - P/E: 8.88

China Recycling Energy saw a decrease in earnings per share from 1.7 in Q4 to -0.09 now. China Recycling Energy does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Central Puerto has reported Q1 earnings per share at 0.05, which has increased by 400.0% compared to Q4, which was 0.01. Central Puerto does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Kenon Hldgs reported earnings per share at 2.69, whereas in Q3 earnings per share sat at 1.09. Kenon Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Pampa Energia's earnings per share for Q1 sits at 0.58, whereas in Q4, they were at 0.41. Pampa Energia does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Suburban Propane Partners's earnings per share for Q2 sits at 2.02, whereas in Q1, they were at 0.61. Most recently, the company reported a dividend yield of 8.12%, which has increased by 0.23% from last quarter's yield of 7.89%.

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.