5 Value Stocks To Watch In The Energy Sector
Understanding 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:
- YPF (NYSE:YPF) - P/E: 8.46
- Oasis Midstream Partners (NASDAQ:OMP) - P/E: 6.02
- Petrobras Brasileiro (NYSE:PBR) - P/E: 2.87
- SandRidge Energy (NYSE:SD) - P/E: 4.92
- Western Midstream (NYSE:WES) - P/E: 9.43
YPF has reported Q3 earnings per share at 0.59, which has increased by 146.46% compared to Q2, which was -1.27. Most recently, the company reported a dividend yield of 1.0%, which has increased by 0.48% from last quarter's yield of 0.52%.
Most recently, Oasis Midstream Partners reported earnings per share at 0.77, whereas in Q2 earnings per share sat at 0.72. Most recently, the company reported a dividend yield of 9.2%, which has decreased by 1.08% from last quarter's yield of 10.28%.
Petrobras Brasileiro has reported Q3 earnings per share at 0.52, which has decreased by 58.06% compared to Q2, which was 1.24. The company's most recent dividend yield sits at 32.4%, which has increased by 10.34% from 22.06% last quarter.
This quarter, SandRidge Energy experienced an increase in earnings per share, which was 0.45 in Q2 and is now 0.8. SandRidge Energy does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Western Midstream experienced an increase in earnings per share, which was 0.55 in Q2 and is now 0.61. Most recently, the company reported a dividend yield of 5.65%, which has decreased by 1.27% from last quarter's yield of 6.92%.
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.