5 Value Stocks To Watch In The Utilities Sector

What is a Value Stock?

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.

The following stocks are considered to be notable value stocks in the utilities sector:

1. Pampa Energia PAM - P/E: 0.19
2. China Recycling Energy CREG - P/E: 3.61
3. Cia Paranaense De Energia ELP - P/E: 4.55
4. Kenon Hldgs KEN - P/E: 5.18
5. Central Puerto CEPU - P/E: 4.35

This quarter, Pampa Energia experienced an increase in earnings per share, which was 0.05 in Q3 and is now 0.41. Pampa Energia does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

China Recycling Energy has reported Q3 earnings per share at -0.25, which has decreased by 158.14% compared to Q2, which was 0.43. China Recycling Energy does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Cia Paranaense De Energia experienced an increase in earnings per share, which was 0.46 in Q3 and is now 0.72. Most recently, the company reported a dividend yield of 8.62%, which has increased by 2.36% from last quarter's yield of 6.26%.

This quarter, Kenon Hldgs experienced an increase in earnings per share, which was 0.02 in Q2 and is now 1.09. Kenon Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Central Puerto has reported Q4 earnings per share at 0.01, which has decreased by 50.0% compared to Q3, which was 0.02. Central Puerto does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.