Overview Of Value Stocks In The Utilities Sector
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.
Benzinga Insights has compiled a list of value stocks in the utilities sector that may be worth watching:
- China Recycling Energy (NASDAQ:CREG) - P/E: 2.59
- Enel Americas (NYSE:ENIA) - P/E: 7.78
- Kenon Hldgs (NYSE:KEN) - P/E: 4.67
- UGI (NYSE:UGI) - P/E: 8.01
- Pampa Energia (NYSE:PAM) - P/E: 2.75
China Recycling Energy's earnings per share for Q3 sits at -0.08, whereas in Q2, they were at -0.16. Enel Americas saw an increase in earnings per share from 0.08 in Q2 to 0.12 now. Most recently, the company reported a dividend yield of 1.23%, which has decreased by 3.03% from last quarter's yield of 4.26%.
Kenon Hldgs saw an increase in earnings per share from 3.2 in Q2 to 3.45 now. This quarter, UGI experienced an increase in earnings per share, which was -0.34 in Q4 and is now 0.93. Its most recent dividend yield is at 3.01%, which has decreased by 0.04% from 3.05% in the previous quarter.
Most recently, Pampa Energia reported earnings per share at 2.36, whereas in Q2 earnings per share sat at 1.94.
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.