Overview Of Value Stocks In The Energy Sector
What Defines a Value Stock?
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:
- Dorian LPG (NYSE:LPG) - P/E: 4.79
- PBF Energy (NYSE:PBF) - P/E: 2.77
- Peabody Energy (NYSE:BTU) - P/E: 4.94
- Seadrill (NYSE:SDRL) - P/E: 0.7
- Teekay (NYSE:TK) - P/E: 5.0
Dorian LPG has reported Q3 earnings per share at $2.62, which has increased by 41.62% compared to Q2, which was 1.85. PBF Energy has reported Q4 earnings per share at $-0.41, which has decreased by 106.2% compared to Q3, which was 6.61. Most recently, the company reported a dividend yield of 1.91%, which has decreased by 0.16% from last quarter's yield of 2.07%.
This quarter, Peabody Energy experienced an increase in earnings per share, which was $0.82 in Q3 and is now $1.33. The company's most recent dividend yield sits at 1.16%, which has decreased by 0.06% from 1.22% last quarter.
Seadrill's earnings per share for Q4 sits at $0.95, whereas in Q3, they were at 1.1. Its most recent dividend yield is at 11.1%, which has increased by 2.32% from 8.78% in the previous quarter.
Teekay has reported Q4 earnings per share at $0.35, which has increased by 29.63% compared to Q3, which was 0.27. The company's most recent dividend yield sits at 5.66%, which has increased by 2.47% from 3.19% 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.
