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.

Below is a list of notable value stocks in the utilities sector:

1. China Recycling Energy CREG - P/E: 4.11
2. PG&E PCG - P/E: 4.14
3. NRG Energy NRG - P/E: 9.85
4. Kenon Hldgs KEN - P/E: 2.95
5. Pampa Energia PAM - P/E: 0.19

Most recently, China Recycling Energy reported earnings per share at -0.09, whereas in Q4 earnings per share sat at 1.7. China Recycling Energy does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, PG&E reported earnings per share at 0.27, whereas in Q1 earnings per share sat at 0.23. Its most recent dividend yield is at 3.06%, which has decreased by 0.04% from 3.1% in the previous quarter.

NRG Energy's earnings per share for Q2 sits at 4.4, whereas in Q1, they were at -0.23. The company's most recent dividend yield sits at 3.33%, which has decreased by 0.03% from 3.36% last quarter.

Kenon Hldgs's earnings per share for Q1 sits at 3.34, whereas in Q4, they were at 2.69. Kenon Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Pampa Energia has reported Q1 earnings per share at 0.58, which has increased by 41.46% compared to Q4, which was 0.41. Pampa Energia 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.