U.S. markets closed
  • S&P 500

    4,538.43
    -38.67 (-0.84%)
     
  • Dow 30

    34,580.08
    -59.71 (-0.17%)
     
  • Nasdaq

    15,085.47
    -295.85 (-1.92%)
     
  • Russell 2000

    2,159.31
    -47.02 (-2.13%)
     
  • Crude Oil

    66.22
    -0.28 (-0.42%)
     
  • Gold

    1,782.10
    +21.40 (+1.22%)
     
  • Silver

    22.45
    +0.17 (+0.76%)
     
  • EUR/USD

    1.1317
    +0.0012 (+0.10%)
     
  • 10-Yr Bond

    1.3430
    -0.1050 (-7.25%)
     
  • GBP/USD

    1.3235
    -0.0067 (-0.50%)
     
  • USD/JPY

    112.8000
    -0.4090 (-0.36%)
     
  • BTC-USD

    49,408.46
    -4,030.81 (-7.54%)
     
  • CMC Crypto 200

    1,367.14
    -74.62 (-5.18%)
     
  • FTSE 100

    7,122.32
    -6.89 (-0.10%)
     
  • Nikkei 225

    28,029.57
    +276.20 (+1.00%)
     

Overview Of Value Stocks In The Utilities Sector

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Understanding 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.

The following stocks are considered to be notable value stocks in the utilities sector:

  1. Cia Paranaense De Energia (NYSE:ELP) - P/E: 5.18

  2. Pampa Energia (NYSE:PAM) - P/E: 0.06

  3. NRG Energy (NYSE:NRG) - P/E: 2.41

  4. China Recycling Energy (NASDAQ:CREG) - P/E: 4.94

  5. Spark Energy (NASDAQ:SPKE) - P/E: 9.23

Most recently, Cia Paranaense De Energia reported earnings per share at 0.46, whereas in Q2 earnings per share sat at 1.09. Most recently, the company reported a dividend yield of 8.62%, which has increased by 2.36% from last quarter's yield of 6.26%.

Pampa Energia saw a decrease in earnings per share from 0.06 in Q2 to 0.05 now. Pampa Energia does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, NRG Energy reported earnings per share at 1.1, whereas in Q2 earnings per share sat at 1.27. The company's most recent dividend yield sits at 3.2%, which has decreased by 0.42% from 3.62% last quarter.

China Recycling Energy has reported Q3 earnings per share at -0.25, which has decreased by 158.14% compared to Q2, which was 0.43. China Recycling Energy does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Spark Energy's earnings per share for Q3 sits at 0.52, whereas in Q2, they were at 0.62. The company's most recent dividend yield sits at 6.57%, which has decreased by 1.89% from 8.46% 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.

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.