5 Value Stocks In The Utilities Sector

What is 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. Genie Energy GNE - P/E: 5.95
2. Suburban Propane Partners SPH - P/E: 6.17
3. NRG Energy NRG - P/E: 4.38
4. Otter Tail OTTR - P/E: 9.21
5. Brookfield Renewable BEPC - P/E: 3.38

Most recently, Genie Energy reported earnings per share at $0.7, whereas in Q2 earnings per share sat at $1.3. Most recently, the company reported a dividend yield of 2.78%, which has decreased by 0.55% from last quarter's yield of 3.33%.

Suburban Propane Partners's earnings per share for Q1 sits at $0.71, whereas in Q4, they were at -0.86. Its most recent dividend yield is at 8.28%, which has increased by 0.31% from 7.97% in the previous quarter.

NRG Energy saw a decrease in earnings per share from 2.16 in Q2 to $0.29 now. Most recently, the company reported a dividend yield of 4.87%, which has increased by 1.43% from last quarter's yield of 3.44%.

Most recently, Otter Tail reported earnings per share at $2.01, whereas in Q2 earnings per share sat at $2.05. Most recently, the company reported a dividend yield of 2.65%, which has increased by 0.25% from last quarter's yield of 2.4%.

Brookfield Renewable's earnings per share for Q4 sits at $-0.16, whereas in Q3, they were at -0.25. The company's most recent dividend yield sits at 4.32%, which has increased by 0.16% from 4.16% 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.