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.
Below is a list of notable value stocks in the utilities sector:
Spark Energy (NASDAQ:SPKE) - P/E: 7.14
Cia Paranaense De Energia (NYSE:ELP) - P/E: 5.05
Atlantic Power (NYSE:AT) - P/E: 4.69
Pampa Energia (NYSE:PAM) - P/E: 0.06
Kenon Hldgs (NYSE:KEN) - P/E: 4.6
Spark Energy has reported Q4 earnings per share at 0.13, which has decreased by 75.0% compared to Q3, which was 0.52. Most recently, the company reported a dividend yield of 6.57%, which has decreased by 1.89% from last quarter's yield of 8.46%.
Most recently, Cia Paranaense De Energia reported earnings per share at 0.46, whereas in Q2 earnings per share sat at 1.09. Its most recent dividend yield is at 8.62%, which has increased by 2.36% from 6.26% in the previous quarter.
Atlantic Power's earnings per share for Q4 sits at 0.3, whereas in Q3, they were at 0.15. Most recently, the company reported a dividend yield of 11.16%, which has increased by 5.83% from last quarter's yield of 5.33%.
Pampa Energia's earnings per share for Q3 sits at 0.05, whereas in Q2, they were at 0.06. Pampa Energia does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Kenon Hldgs's earnings per share for Q3 sits at 1.09, whereas in Q2, they were at 0.02. Kenon Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
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.
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