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News

A Look Into Utilities Sector Value Stocks

Author: Benzinga Insights | February 21, 2024 10:38am

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. TransAlta (NYSE:TAC) - P/E: 4.32
  2. Genie Energy (NYSE:GNE) - P/E: 9.41
  3. Cia Energetica DE Minas (NYSE:CIG) - P/E: 4.99
  4. OPAL Fuels (NASDAQ:OPAL) - P/E: 6.46
  5. Enel Chile (NYSE:ENIC) - P/E: 2.95

This quarter, TransAlta experienced an increase in earnings per share, which was $0.17 in Q2 and is now $1.05. Its most recent dividend yield is at 2.08%, which has decreased by 0.08% from 2.16% in the previous quarter.

Genie Energy has reported Q3 earnings per share at $0.53, which has increased by 17.78% compared to Q2, which was 0.45. The company's most recent dividend yield sits at 1.61%, which has increased by 0.13% from 1.48% last quarter.

This quarter, Cia Energetica DE Minas experienced a decrease in earnings per share, which was $0.12 in Q2 and is now $0.03. Most recently, OPAL Fuels reported earnings per share at $-0.01, whereas in Q2 earnings per share sat at $-0.12. This quarter, Enel Chile experienced an increase in earnings per share, which was $0.1 in Q2 and is now $0.14. Most recently, the company reported a dividend yield of 64.82%, which has decreased by 1.55% from last quarter's yield of 66.37%.

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: CIG ENIC GNE OPAL TAC

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