A Look Into Energy Sector Value Stocks

What Defines 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.

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

  1. Overseas Shipholding Gr OSG - P/E: 5.53
  2. Navios Maritime NNA - P/E: 1.47
  3. Equitrans Midstream ETRN - P/E: 7.69
  4. CrossAmerica Partners CAPL - P/E: 6.43
  5. Phillips 66 Partners PSXP - P/E: 9.5

Overseas Shipholding Gr saw a decrease in earnings per share from 0.07 in Q2 to -0.01 now. Overseas Shipholding Gr does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Navios Maritime saw a decrease in earnings per share from 2.01 in Q2 to -0.23 now. Its most recent dividend yield is at 4.36%, which has decreased by 22.07% from 26.43% in the previous quarter.

Equitrans Midstream looks to be undervalued. It possesses an EPS of 0.31, which has not changed since last quarter (Q3). Most recently, the company reported a dividend yield of 8.39%, which has increased by 1.23% from last quarter's yield of 7.16%.

Most recently, CrossAmerica Partners reported earnings per share at 0.24, whereas in Q3 earnings per share sat at 0.56. The company's most recent dividend yield sits at 11.99%, which has decreased by 1.78% from 13.77% last quarter.

This quarter, Phillips 66 Partners experienced a decrease in earnings per share, which was 0.85 in Q3 and is now 0.8. Its most recent dividend yield is at 11.37%, which has decreased by 3.16% from 14.53% 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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