5 Value Stocks In The Utilities Sector

The Meaning Behind 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 utilities sector that may be worth watching:

1. Brookfield Renewable BEPC - P/E: 3.86
2. Clearway Energy CWEN - P/E: 5.15
3. Enel Chile ENIC - P/E: 3.06
4. Genie Energy GNE - P/E: 7.1
5. Pampa Energia PAM - P/E: 6.75

Brookfield Renewable's earnings per share for Q1 sits at $-0.09, whereas in Q4, they were at -0.16. The company's most recent dividend yield sits at 4.19%, which has decreased by 0.13% from 4.32% last quarter.

Clearway Energy has reported Q1 earnings per share at $0.0, which has decreased by 100.0% compared to Q4, which was 0.1. Its most recent dividend yield is at 5.09%, which has increased by 0.56% from 4.53% in the previous quarter.

Most recently, Enel Chile reported earnings per share at $0.13, whereas in Q4 earnings per share sat at $0.86. The company's most recent dividend yield sits at 1.41%, which has decreased by 35.63% from 37.04% last quarter.

Genie Energy saw a decrease in earnings per share from 0.61 in Q4 to $0.54 now. Its most recent dividend yield is at 1.96%, which has decreased by 0.45% from 2.41% in the previous quarter.

Pampa Energia's earnings per share for Q1 sits at $2.56, whereas in Q4, they were at 2.05.

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.