5 Value Stocks To Watch In The Energy Sector
Understanding 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.
The following stocks are considered to be notable value stocks in the energy sector:
- Pyxis Tankers (NASDAQ:PXS) - P/E: 2.63
- HF Sinclair (NYSE:DINO) - P/E: 4.91
- TotalEnergies (NYSE:TTE) - P/E: 8.3
- Tsakos Energy Navigation (NYSE:TNP) - P/E: 2.15
- Par Pacific Hldgs (NYSE:PARR) - P/E: 4.26
This quarter, Pyxis Tankers experienced an increase in earnings per share, which was $0.23 in Q2 and is now $0.26. This quarter, HF Sinclair experienced an increase in earnings per share, which was $2.6 in Q2 and is now $4.06. The company's most recent dividend yield sits at 3.23%, which has decreased by 0.26% from 3.49% last quarter.
TotalEnergies has reported Q3 earnings per share at $2.63, which has increased by 32.16% compared to Q2, which was 1.99. Its most recent dividend yield is at 4.71%, which has decreased by 0.44% from 5.15% in the previous quarter.
Most recently, Tsakos Energy Navigation reported earnings per share at $0.83, whereas in Q2 earnings per share sat at $1.65. Par Pacific Hldgs saw an increase in earnings per share from 1.73 in Q2 to $3.15 now.
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.