A Look Into Energy Sector Value Stocks
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:
- PrimeEnergy Resources (NASDAQ:PNRG) - P/E: 7.79
- RPC (NYSE:RES) - P/E: 6.72
- ProPetro Holding (NYSE:PUMP) - P/E: 8.29
- San Juan Basin Royalty (NYSE:SJT) - P/E: 3.06
- SilverBow Resources (NYSE:SBOW) - P/E: 2.19
This quarter, PrimeEnergy Resources experienced an increase in earnings per share, which was $3.82 in Q2 and is now $4.13. RPC has reported Q3 earnings per share at $0.08, which has decreased by 73.33% compared to Q2, which was 0.3. Its most recent dividend yield is at 1.84%, which has increased by 0.05% from 1.79% in the previous quarter.
Most recently, ProPetro Holding reported earnings per share at $0.31, whereas in Q2 earnings per share sat at $0.34. San Juan Basin Royalty's earnings per share for Q3 sits at $0.08, whereas in Q2, they were at 0.17. The company's most recent dividend yield sits at 2.61%, which has decreased by 0.18% from 2.79% last quarter.
SilverBow Resources saw an increase in earnings per share from 1.1 in Q2 to $2.94 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.