A Look Into Utilities Sector Value Stocks

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. Enel Chile ENIC - P/E: 2.75
2. Pampa Energia PAM - P/E: 3.43
3. Brookfield Renewable BEPC - P/E: 5.67
4. Genie Energy GNE - P/E: 9.19
5. Vistra VST - P/E: 9.24

Enel Chile has reported Q2 earnings per share at $0.1, which has decreased by 23.08% compared to Q1, which was 0.13. Its most recent dividend yield is at 64.82%, which has decreased by 1.55% from 66.37% in the previous quarter.

Pampa Energia's earnings per share for Q2 sits at $3.01, whereas in Q1, they were at 2.56. Brookfield Renewable has reported Q2 earnings per share at $-0.1, which has decreased by 11.11% compared to Q1, which was -0.09. The company's most recent dividend yield sits at 4.77%, which has increased by 0.58% from 4.19% last quarter.

Most recently, Genie Energy reported earnings per share at $0.45, whereas in Q1 earnings per share sat at $0.54. Its most recent dividend yield is at 2.19%, which has increased by 0.23% from 1.96% in the previous quarter.

This quarter, Vistra experienced a decrease in earnings per share, which was $1.71 in Q1 and is now $1.17. Most recently, the company reported a dividend yield of 2.95%, which has decreased by 0.58% from last quarter's yield of 3.53%.

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.