What are 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:
- Pampa Energia PAM - P/E: 2.97
- Companhia De Saneamento SBS - P/E: 9.83
- OGE Energy OGE - P/E: 7.33
- UGI UGI - P/E: 5.49
- NRG Energy NRG - P/E: 2.25
Pampa Energia has reported Q1 earnings per share at $1.79, which has increased by 155.71% compared to Q4, which was 0.7. Companhia De Saneamento has reported Q1 earnings per share at $0.27, which has increased by 80.0% compared to Q4, which was 0.15. Its most recent dividend yield is at 1.83%, which has increased by 0.76% from 1.07% in the previous quarter.
OGE Energy has reported Q1 earnings per share at $1.39, which has increased by 414.81% compared to Q4, which was 0.27. Most recently, the company reported a dividend yield of 4.11%, which has decreased by 0.45% from last quarter's yield of 4.56%.
This quarter, UGI experienced an increase in earnings per share, which was $0.93 in Q1 and is now $1.91. Most recently, the company reported a dividend yield of 4.06%, which has increased by 1.05% from last quarter's yield of 3.01%.
NRG Energy has reported Q1 earnings per share at $7.17, which has increased by 512.07% compared to Q4, which was -1.74. The company's most recent dividend yield sits at 3.53%, which has decreased by 0.1% from 3.63% last 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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