Overview Of 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. OGE Energy OGE - P/E: 9.1
2. Clearway Energy CWEN - P/E: 8.17
3. UGI UGI - P/E: 6.44
4. Kenon Hldgs KEN - P/E: 1.72
5. Smart Powerr CREG - P/E: 1.74

OGE Energy saw a decrease in earnings per share from 1.39 in Q1 to $0.36 now. The company's most recent dividend yield sits at 4.11%, which has decreased by 0.45% from 4.56% last quarter.

Most recently, Clearway Energy reported earnings per share at $-4.37, whereas in Q1 earnings per share sat at $-0.28. Most recently, the company reported a dividend yield of 3.84%, which has decreased by 0.67% from last quarter's yield of 4.51%.

This quarter, UGI experienced a decrease in earnings per share, which was $1.91 in Q2 and is now $0.06. Most recently, the company reported a dividend yield of 3.35%, which has decreased by 0.71% from last quarter's yield of 4.06%.

Most recently, Kenon Hldgs reported earnings per share at $11.86, whereas in Q4 earnings per share sat at $7.28. 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.