Overview Of Value Stocks In The Energy Sector
The Meaning Behind 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:
- Hoegh LNG Partners (NYSE:HMLP) - P/E: 7.5
- Eni (NYSE:E) - P/E: 4.76
- Vista Energy (NYSE:VIST) - P/E: 5.14
- TransGlobe Energy (NASDAQ:TGA) - P/E: 2.34
- California Resources (NYSE:CRC) - P/E: 6.92
Hoegh LNG Partners has reported Q1 earnings per share at $0.49, which has increased by 32.43% compared to Q4, which was 0.37. Its most recent dividend yield is at 0.44%, which has decreased by 0.13% from 0.57% in the previous quarter.
Eni saw an increase in earnings per share from 2.04 in Q1 to $2.28 now. The company's most recent dividend yield sits at 6.29%, which has increased by 0.48% from 5.81% last quarter.
Vista Energy has reported Q2 earnings per share at $1.06, which has increased by 550.92% compared to Q1, which was 0.16. TransGlobe Energy saw an increase in earnings per share from 0.09 in Q4 to $0.66 now. Its most recent dividend yield is at 6.02%, which has increased by 1.12% from 4.9% in the previous quarter.
California Resources has been featured as a value stock. California Resources's Q2 EPS sits at $1.13, which has not changed since last quarter (Q1). The company's most recent dividend yield sits at 1.53%, which has decreased by 0.16% from 1.69% last 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.