A Look Into Energy 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 energy sector that may be worth watching:

1. GeoPark GPRK - P/E: 3.7
2. Antero Resources AR - P/E: 8.32
3. Callon Petroleum CPE - P/E: 3.24
4. DHT Holdings DHT - P/E: 9.26
5. Frontline FRO - P/E: 6.2

GeoPark's earnings per share for Q3 sits at $0.44, whereas in Q2, they were at 0.59. The company's most recent dividend yield sits at 5.43%, which has increased by 0.45% from 4.98% last quarter.

Antero Resources has reported Q3 earnings per share at $0.08, which has increased by 128.57% compared to Q2, which was -0.28. Most recently, Callon Petroleum reported earnings per share at $1.82, whereas in Q2 earnings per share sat at $1.99. DHT Holdings saw a decrease in earnings per share from 0.35 in Q2 to $0.19 now. Its most recent dividend yield is at 6.75%, which has decreased by 7.51% from 14.26% in the previous quarter.

Frontline saw a decrease in earnings per share from 0.94 in Q2 to $0.36 now. The company's most recent dividend yield sits at 15.82%, which has increased by 14.5% from 1.32% last quarter.

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.