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A Look Into Energy Sector Value Stocks

Author: Benzinga Insights | December 07, 2023 10:39am

The Meaning Behind 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 energy sector:

  1. ProPetro Holding (NYSE:PUMP) - P/E: 8.09
  2. YPF (NYSE:YPF) - P/E: 9.42
  3. Global Partners (NYSE:GLP) - P/E: 9.55
  4. Baytex Energy (NYSE:BTE) - P/E: 3.6
  5. Sunoco (NYSE:SUN) - P/E: 9.45

This quarter, ProPetro Holding experienced a decrease in earnings per share, which was $0.34 in Q2 and is now $0.31. YPF has reported Q3 earnings per share at $-0.33, which has decreased by 140.24% compared to Q2, which was 0.82. The company's most recent dividend yield sits at 1.0%, which has increased by 0.47% from 0.53% last quarter.

This quarter, Global Partners experienced a decrease in earnings per share, which was $1.05 in Q2 and is now $0.6. Most recently, the company reported a dividend yield of 9.28%, which has increased by 0.95% from last quarter's yield of 8.33%.

This quarter, Baytex Energy experienced a decrease in earnings per share, which was $0.27 in Q2 and is now $0.11. Most recently, the company reported a dividend yield of 3.74%, which has decreased by 5.66% from last quarter's yield of 9.4%.

Most recently, Sunoco reported earnings per share at $2.95, whereas in Q2 earnings per share sat at $0.78. The company's most recent dividend yield sits at 6.61%, which has decreased by 0.89% from 7.5% 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.

Posted In: BTE GLP PUMP SUN YPF

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