Overview Of Value Stocks In The Utilities 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.
The following stocks are considered to be notable value stocks in the utilities sector:
- OPAL Fuels (NASDAQ:OPAL) - P/E: 7.04
- Cia Energetica DE Minas (NYSE:CIG) - P/E: 4.65
- Brookfield Renewable (NYSE:BEPC) - P/E: 3.34
- Hawaiian Electric Indus (NYSE:HE) - P/E: 8.15
- Suburban Propane Partners (NYSE:SPH) - P/E: 8.9
OPAL Fuels has reported Q3 earnings per share at $-0.01, which has increased by 91.67% compared to Q2, which was -0.12. Cia Energetica DE Minas has reported Q3 earnings per share at $0.03, which has decreased by 75.0% compared to Q2, which was 0.12. Brookfield Renewable saw a decrease in earnings per share from -0.1 in Q2 to $-0.14 now. Most recently, the company reported a dividend yield of 5.42%, which has increased by 0.65% from last quarter's yield of 4.77%.
Most recently, Hawaiian Electric Indus reported earnings per share at $0.56, whereas in Q2 earnings per share sat at $0.5. Its most recent dividend yield is at 3.75%, which has increased by 0.01% from 3.74% in the previous quarter.
Suburban Propane Partners has reported Q4 earnings per share at $-0.33, which has decreased by 312.5% compared to Q3, which was -0.08. Most recently, the company reported a dividend yield of 7.71%, which has decreased by 0.99% from last quarter's yield of 8.7%.
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.