5 Value Stocks In The Utilities Sector

What Defines a Value Stock?

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.

Benzinga Insights has compiled a list of value stocks in the utilities sector that may be worth watching:

1. China Recycling Energy CREG - P/E: 3.99
2. Central Puerto CEPU - P/E: 5.14
3. Kenon Hldgs KEN - P/E: 2.54
4. Pampa Energia PAM - P/E: 0.2
5. Suburban Propane Partners SPH - P/E: 9.3

China Recycling Energy has reported Q1 earnings per share at -0.09, which has decreased by 105.29% compared to Q4, which was 1.7. China Recycling Energy does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Central Puerto reported earnings per share at 0.05, whereas in Q4 earnings per share sat at 0.01. Central Puerto does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Kenon Hldgs has reported Q1 earnings per share at 3.34, which has increased by 24.16% compared to Q4, which was 2.69. Kenon Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Pampa Energia saw an increase in earnings per share from 0.41 in Q4 to 0.58 now. Pampa Energia does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Suburban Propane Partners reported earnings per share at 2.02, whereas in Q1 earnings per share sat at 0.61. Its most recent dividend yield is at 8.12%, which has increased by 0.23% from 7.89% 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.