5 Value Stocks In The Energy Sector

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.

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

1. PBF Logistics PBFX - P/E: 5.08
2. Vermilion Energy VET - P/E: 2.73
3. Sunoco SUN - P/E: 7.43
4. Transportadora de Gas TGS - P/E: 9.59
5. SandRidge Energy SD - P/E: 4.64

PBF Logistics's earnings per share for Q3 sits at 0.58, whereas in Q2, they were at 0.64. The company's most recent dividend yield sits at 8.75%, which has decreased by 0.4% from 9.15% last quarter.

Vermilion Energy's earnings per share for Q3 sits at -0.72, whereas in Q2, they were at 2.27. Most recently, the company reported a dividend yield of 28.87%, which has increased by 14.13% from last quarter's yield of 14.74%.

Sunoco's earnings per share for Q3 sits at 1.0, whereas in Q2, they were at 1.73. The company's most recent dividend yield sits at 7.91%, which has decreased by 1.18% from 9.09% last quarter.

This quarter, Transportadora de Gas experienced an increase in earnings per share, which was 0.24 in Q2 and is now 0.3. 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%.

SandRidge Energy saw an increase in earnings per share from 0.45 in Q2 to 0.8 now. SandRidge Energy 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.