A Look Into Energy Sector Value Stocks
What are 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.
Below is a list of notable value stocks in the energy sector:
- Ranger Energy Services (NYSE:RNGR) - P/E: 8.58
- Natural Resources (NYSE:NRP) - P/E: 6.33
- TORM (NASDAQ:TRMD) - P/E: 3.93
- Matador Resources (NYSE:MTDR) - P/E: 8.32
- Marathon Petroleum (NYSE:MPC) - P/E: 5.57
Most recently, Ranger Energy Services reported earnings per share at $0.38, whereas in Q2 earnings per share sat at $0.24. Most recently, the company reported a dividend yield of 1.51%, which has decreased by 0.4% from last quarter's yield of 1.91%.
Most recently, Natural Resources reported earnings per share at $2.91, whereas in Q2 earnings per share sat at $2.49. The company's most recent dividend yield sits at 4.2%, which has decreased by 0.52% from 4.72% last quarter.
This quarter, TORM experienced a decrease in earnings per share, which was $2.14 in Q2 and is now $1.42. Most recently, Matador Resources reported earnings per share at $1.86, whereas in Q2 earnings per share sat at $1.42. The company's most recent dividend yield sits at 1.22%, which has increased by 0.14% from 1.08% last quarter.
Marathon Petroleum has reported Q3 earnings per share at $8.14, which has increased by 53.01% compared to Q2, which was 5.32. Its most recent dividend yield is at 2.22%, which has decreased by 0.11% from 2.33% 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.