A Look Into Energy Sector Value Stocks

What are 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.

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

1. DCP Midstream DCP - P/E: 7.69
2. Centrus Energy LEU - P/E: 4.2
3. SilverBow Resources SBOW - P/E: 1.65
4. Flex LNG FLNG - P/E: 8.47
5. Murphy Oil MUR - P/E: 7.14

DCP Midstream's earnings per share for Q3 sits at $1.5, whereas in Q2, they were at 1.77. Most recently, the company reported a dividend yield of 4.56%, which has decreased by 1.07% from last quarter's yield of 5.63%.

Most recently, Centrus Energy reported earnings per share at $-0.42, whereas in Q2 earnings per share sat at $2.51. This quarter, SilverBow Resources experienced an increase in earnings per share, which was $4.95 in Q2 and is now $6.29. Flex LNG's earnings per share for Q3 sits at $0.79, whereas in Q2, they were at 0.61. Most recently, the company reported a dividend yield of 8.61%, which has decreased by 6.24% from last quarter's yield of 14.85%.

Murphy Oil's earnings per share for Q3 sits at $1.84, whereas in Q2, they were at 1.93. The company's most recent dividend yield sits at 2.42%, which has decreased by 0.7% from 3.12% last 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.