A Look Into Energy Sector Value Stocks

What are Value Stocks?

A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.

Below is a list of notable value stocks in the energy sector:

1. Range Resources RRC - P/E: 5.39
2. ConocoPhillips COP - P/E: 6.85
3. Holly Energy Partners HEP - P/E: 9.92
4. Vista Energy VIST - P/E: 7.18
5. Permian Resources PR - P/E: 6.35

Range Resources's earnings per share for Q4 sits at $1.3, whereas in Q3, they were at 1.37. Most recently, the company reported a dividend yield of 1.19%, which has increased by 0.08% from last quarter's yield of 1.11%.

ConocoPhillips saw a decrease in earnings per share from 3.6 in Q3 to $2.71 now. Holly Energy Partners saw an increase in earnings per share from 0.49 in Q3 to $0.54 now. The company's most recent dividend yield sits at 7.2%, which has decreased by 0.44% from 7.64% last quarter.

Vista Energy has reported Q4 earnings per share at $0.76, which has increased by 1.6% compared to Q3, which was 0.75. This quarter, Permian Resources experienced a decrease in earnings per share, which was $0.7 in Q3 and is now $0.26. Most recently, the company reported a dividend yield of 2.15%, which has increased by 0.36% from last quarter's yield of 1.79%.

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.