A Look Into Utilities Sector Value Stocks

What are 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 utilities sector that may be worth watching:

1. Brookfield Renewable BEPC - P/E: 7.21
2. Enel Chile ENIC - P/E: 2.87
3. Pampa Energia PAM - P/E: 6.48

This quarter, Brookfield Renewable experienced a decrease in earnings per share, which was $-0.09 in Q1 and is now $-0.1. Most recently, the company reported a dividend yield of 4.77%, which has increased by 0.58% from last quarter's yield of 4.19%.

Enel Chile's earnings per share for Q1 sits at $0.13, whereas in Q4, they were at 0.86. The company's most recent dividend yield sits at 64.82%, which has increased by 63.41% from 1.41% last quarter.

Most recently, Pampa Energia reported earnings per share at $2.56, whereas in Q4 earnings per share sat at $2.05.

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.