A Look Into Utilities 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 utilities sector that may be worth watching:

1. Pampa Energia PAM - P/E: 4.17
2. Genie Energy GNE - P/E: 7.05
3. Vistra VST - P/E: 8.54
4. Enel Chile ENIC - P/E: 2.84
5. Brookfield Renewable BEPC - P/E: 6.99

Pampa Energia's earnings per share for Q2 sits at $3.01, whereas in Q1, they were at 2.56. Genie Energy's earnings per share for Q2 sits at $0.45, whereas in Q1, they were at 0.54. Most recently, the company reported a dividend yield of 2.19%, which has increased by 0.23% from last quarter's yield of 1.96%.

Vistra saw a decrease in earnings per share from 1.71 in Q1 to $1.17 now. The company's most recent dividend yield sits at 2.95%, which has decreased by 0.58% from 3.53% last quarter.

This quarter, Enel Chile experienced a decrease in earnings per share, which was $0.86 in Q4 and is now $0.13. Most recently, the company reported a dividend yield of 64.82%, which has increased by 63.41% from last quarter's yield of 1.41%.

Most recently, Brookfield Renewable reported earnings per share at $-0.1, whereas in Q1 earnings per share sat at $-0.09. Most recently, the company reported a dividend yield of 4.77%, which has increased by 0.58% from last quarter's yield of 4.19%.

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.