5 Value Stocks To Watch In The Energy Sector

The Meaning Behind Value Stocks

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.

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

1. Kimbell Royalty Partners KRP - P/E: 6.72
2. YPF YPF - P/E: 3.86
3. Marathon Oil MRO - P/E: 6.31
4. Riley Exploration Permian REPX - P/E: 4.52
5. Global Partners GLP - P/E: 3.33

Kimbell Royalty Partners saw a decrease in earnings per share from 0.48 in Q4 to $0.36 now. Most recently, the company reported a dividend yield of 8.96%, which has decreased by 4.2% from last quarter's yield of 13.16%.

This quarter, YPF experienced a decrease in earnings per share, which was $1.19 in Q4 and is now $0.87. Most recently, the company reported a dividend yield of 1.0%, which has increased by 0.47% from last quarter's yield of 0.53%.

This quarter, Marathon Oil experienced a decrease in earnings per share, which was $0.88 in Q4 and is now $0.67. Its most recent dividend yield is at 1.68%, which has increased by 0.24% from 1.44% in the previous quarter.

This quarter, Riley Exploration Permian experienced a decrease in earnings per share, which was $1.36 in Q4 and is now $1.26. Its most recent dividend yield is at 3.79%, which has increased by 0.69% from 3.1% in the previous quarter.

Most recently, Global Partners reported earnings per share at $0.7, whereas in Q4 earnings per share sat at $1.54. The company's most recent dividend yield sits at 8.33%, which has decreased by 0.13% from 8.46% 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.