A Look Into Utilities Sector Value Stocks

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: 3.01
2. UGI UGI - P/E: 9.68
3. Energy Co of Minas Gerais CIG - P/E: 7.64
4. Suburban Propane Partners SPH - P/E: 9.85
5. Kenon Hldgs KEN - P/E: 4.03

Most recently, Pampa Energia reported earnings per share at 1.94, whereas in Q1 earnings per share sat at 0.58. Pampa Energia does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, UGI experienced a decrease in earnings per share, which was 1.99 in Q2 and is now 0.13. Most recently, the company reported a dividend yield of 2.96%, which has decreased by 0.16% from last quarter's yield of 3.12%.

Energy Co of Minas Gerais has reported Q2 earnings per share at 0.22, which has increased by 340.0% compared to Q1, which was 0.05. Energy Co of Minas Gerais does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Suburban Propane Partners has reported Q3 earnings per share at -0.16, which has decreased by 107.92% compared to Q2, which was 2.02. Most recently, the company reported a dividend yield of 8.56%, which has increased by 0.44% from last quarter's yield of 8.12%.

Kenon Hldgs has reported Q2 earnings per share at 3.2, which has decreased by 4.19% compared to Q1, which was 3.34. Kenon Hldgs 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.