What is a Value Stock?
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.
The following stocks are considered to be notable value stocks in the energy sector:
- Navios Maritime NNA - P/E: 1.17
- Transportadora de Gas TGS - P/E: 8.03
- North American NOA - P/E: 8.42
- Smart Sand SND - P/E: 1.79
- PBF Logistics PBFX - P/E: 4.16
Navios Maritime has reported Q3 earnings per share at -0.23, which has decreased by 111.44% compared to Q2, which was 2.01. Most recently, the company reported a dividend yield of 4.36%, which has decreased by 22.07% from last quarter's yield of 26.43%.
Most recently, Transportadora de Gas reported earnings per share at 0.12, whereas in Q2 earnings per share sat at 0.17. Most recently, the company reported a dividend yield of 3.71%, which has ('', 'not changed') by 0.0% from last quarter's yield of 3.71%.
Most recently, North American reported earnings per share at 0.2, whereas in Q2 earnings per share sat at 0.32. Most recently, the company reported a dividend yield of 1.92%, which has decreased by 0.13% from last quarter's yield of 2.05%.
This quarter, Smart Sand experienced a decrease in earnings per share, which was 0.12 in Q2 and is now -0.09. Smart Sand does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, PBF Logistics experienced a decrease in earnings per share, which was 0.62 in Q2 and is now 0.58. Its most recent dividend yield is at 15.33%, which has increased by 2.97% from 12.36% in the previous 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.
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