5 Value Stocks In The Energy Sector
What Defines 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.
Benzinga Insights has compiled a list of value stocks in the energy sector that may be worth watching:
- Earthstone Energy (NYSE:ESTE) - P/E: 6.53
- SilverBow Resources (NYSE:SBOW) - P/E: 6.44
- TransGlobe Energy (NASDAQ:TGA) - P/E: 2.07
- PBF Logistics (NYSE:PBFX) - P/E: 7.85
- Epsilon Energy (NASDAQ:EPSN) - P/E: 6.99
This quarter, Earthstone Energy experienced an increase in earnings per share, which was $0.78 in Q1 and is now $1.29. SilverBow Resources has reported Q2 earnings per share at $4.95, which has increased by 228.91% compared to Q1, which was -3.84. TransGlobe Energy saw a decrease in earnings per share from 0.66 in Q1 to $0.44 now. Most recently, the company reported a dividend yield of 6.02%, which has increased by 1.12% from last quarter's yield of 4.9%.
Most recently, PBF Logistics reported earnings per share at $0.62, whereas in Q1 earnings per share sat at $0.58. The company's most recent dividend yield sits at 6.57%, which has decreased by 1.3% from 7.87% last quarter.
Epsilon Energy saw an increase in earnings per share from 0.24 in Q1 to $0.44 now. Its most recent dividend yield is at 3.54%, which has decreased by 0.86% from 4.4% in the previous 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.