5 Value Stocks In The Energy Sector

What Defines 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.

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

1. Shell SHEL - P/E: 4.83
2. Northern Oil & Gas NOG - P/E: 2.09
3. Mexco Energy MXC - P/E: 5.16
4. Equinor EQNR - P/E: 3.09
5. Battalion Oil BATL - P/E: 0.79

Shell looks to be undervalued. It possesses an EPS of $2.78, which has not changed since last quarter (Q4). The company's most recent dividend yield sits at 3.93%, which has decreased by 0.01% from 3.94% last quarter.

Most recently, Northern Oil & Gas reported earnings per share at $1.76, whereas in Q4 earnings per share sat at $1.43. Most recently, the company reported a dividend yield of 4.46%, which has increased by 0.2% from last quarter's yield of 4.26%.

Most recently, Mexco Energy reported earnings per share at $0.56, whereas in Q2 earnings per share sat at $0.55. Equinor has reported Q1 earnings per share at $1.12, which has decreased by 39.46% compared to Q4, which was 1.85. Most recently, the company reported a dividend yield of 4.45%, which has increased by 0.35% from last quarter's yield of 4.1%.

Most recently, Battalion Oil reported earnings per share at $-0.04, whereas in Q4 earnings per share sat at $-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.