A Look Into Utilities Sector Value Stocks

Understanding 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.

Benzinga Insights has compiled a list of value stocks in the utilities sector that may be worth watching:

1. OPAL Fuels OPAL - P/E: 7.13
2. Cia Energetica DE Minas CIG - P/E: 4.7
3. Brookfield Renewable BEPC - P/E: 3.38
4. Enel Chile ENIC - P/E: 2.96
5. Suburban Propane Partners SPH - P/E: 9.54

OPAL Fuels's earnings per share for Q3 sits at $-0.01, whereas in Q2, they were at -0.12. Most recently, Cia Energetica DE Minas reported earnings per share at $0.03, whereas in Q2 earnings per share sat at $0.12. Most recently, Brookfield Renewable reported earnings per share at $-0.14, whereas in Q2 earnings per share sat at $-0.1. Its most recent dividend yield is at 5.42%, which has increased by 0.65% from 4.77% in the previous quarter.

Enel Chile has reported Q3 earnings per share at $0.14, which has increased by 40.0% compared to Q2, which was 0.1. The company's most recent dividend yield sits at 64.82%, which has decreased by 1.55% from 66.37% last quarter.

Most recently, Suburban Propane Partners reported earnings per share at $-0.33, whereas in Q3 earnings per share sat at $-0.08. Most recently, the company reported a dividend yield of 7.71%, which has decreased by 0.99% from last quarter's yield of 8.7%.

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.