A Look Into Energy Sector Value Stocks
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:
- PrimeEnergy Resources (NASDAQ:PNRG) - P/E: 6.39
- SM Energy (NYSE:SM) - P/E: 3.02
- Kosmos Energy (NYSE:KOS) - P/E: 8.47
- Liberty Energy (NYSE:LBRT) - P/E: 4.31
- GasLog Partners (NYSE:GLOP) - P/E: 4.95
PrimeEnergy Resources saw a decrease in earnings per share from 4.99 in Q4 to $0.53 now. SM Energy's earnings per share for Q1 sits at $1.33, whereas in Q4, they were at 1.29. Most recently, the company reported a dividend yield of 1.97%, which has decreased by 0.19% from last quarter's yield of 2.16%.
Kosmos Energy saw a decrease in earnings per share from 0.23 in Q4 to $0.16 now. Its most recent dividend yield is at 3.64%, which has increased by 0.77% from 2.87% in the previous quarter.
Liberty Energy saw an increase in earnings per share from 0.82 in Q4 to $0.9 now. Most recently, the company reported a dividend yield of 1.51%, which has increased by 0.16% from last quarter's yield of 1.35%.
GasLog Partners saw a decrease in earnings per share from 0.74 in Q4 to $0.62 now. Most recently, the company reported a dividend yield of 0.47%, which has decreased by 0.1% from last quarter's yield of 0.57%.
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.