A Look Into Utilities Sector Value Stocks

Author: Benzinga Insights | April 05, 2023 10:38am

What is 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:

1. Brookfield Renewable (NYSE:BEPC) - P/E: 3.88
2. Enel Chile (NYSE:ENIC) - P/E: 2.19
3. Central Puerto (NYSE:CEPU) - P/E: 8.95
4. NRG Energy (NYSE:NRG) - P/E: 6.49
5. Pampa Energia (NYSE:PAM) - P/E: 4.04

This quarter, Brookfield Renewable experienced an increase in earnings per share, which was $-0.25 in Q3 and is now $-0.16. Its most recent dividend yield is at 4.32%, which has increased by 0.16% from 4.16% in the previous quarter.

This quarter, Enel Chile experienced an increase in earnings per share, which was $-0.01 in Q2 and is now $0.08. Its most recent dividend yield is at 1.41%, which has decreased by 35.63% from 37.04% in the previous quarter.

Central Puerto has reported Q4 earnings per share at $0.1, which has decreased by 54.55% compared to Q3, which was 0.22. NRG Energy's earnings per share for Q4 sits at $-4.56, whereas in Q3, they were at 0.29. Its most recent dividend yield is at 4.87%, which has increased by 1.43% from 3.44% in the previous quarter.

Pampa Energia has reported Q4 earnings per share at $2.05, which has decreased by 36.53% compared to Q3, which was 3.23.

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.

Posted In: BEPC CEPU ENIC NRG PAM