5 Value Stocks In The Utilities Sector

Understanding Value Stocks

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.

The following stocks are considered to be notable value stocks in the utilities sector:

1. China Recycling Energy CREG - P/E: 3.97
2. PG&E PCG - P/E: 4.11
3. Central Puerto CEPU - P/E: 5.23
4. NRG Energy NRG - P/E: 9.88
5. Suburban Propane Partners SPH - P/E: 9.99

Most recently, China Recycling Energy reported earnings per share at -0.09, whereas in Q4 earnings per share sat at 1.7. China Recycling Energy does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

PG&E has reported Q2 earnings per share at 0.27, which has increased by 17.39% compared to Q1, which was 0.23. Its most recent dividend yield is at 3.06%, which has decreased by 0.04% from 3.1% in the previous quarter.

Central Puerto has reported Q2 earnings per share at -0.03, which has decreased by 160.0% compared to Q1, which was 0.05. Central Puerto does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

NRG Energy has reported Q2 earnings per share at 4.4, which has increased by 2013.04% compared to Q1, which was -0.23. Its most recent dividend yield is at 3.33%, which has decreased by 0.03% from 3.36% in the previous quarter.

Suburban Propane Partners has reported Q3 earnings per share at -0.16, which has decreased by 107.92% compared to Q2, which was 2.02. Its most recent dividend yield is at 8.56%, which has increased by 0.44% from 8.12% 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.