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News

5 Value Stocks In The Utilities Sector

Author: Benzinga Insights | February 28, 2024 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.

Benzinga Insights has compiled a list of value stocks in the utilities sector that may be worth watching:

  1. Genie Energy (NYSE:GNE) - P/E: 9.49
  2. Hawaiian Electric Indus (NYSE:HE) - P/E: 6.95
  3. Entergy (NYSE:ETR) - P/E: 9.08
  4. Enel Chile (NYSE:ENIC) - P/E: 2.86
  5. TransAlta (NYSE:TAC) - P/E: 4.15

Genie Energy's earnings per share for Q3 sits at $0.53, whereas in Q2, they were at 0.45. The company's most recent dividend yield sits at 1.61%, which has increased by 0.13% from 1.48% last quarter.

Hawaiian Electric Indus's earnings per share for Q4 sits at $0.48, whereas in Q3, they were at 0.56. Most recently, the company reported a dividend yield of 3.75%, which has increased by 0.01% from last quarter's yield of 3.74%.

Entergy saw a decrease in earnings per share from 3.27 in Q3 to $0.52 now. Its most recent dividend yield is at 4.56%, which has decreased by 0.29% from 4.85% in the previous quarter.

Enel Chile saw an increase in earnings per share from 0.1 in Q2 to $0.14 now. 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%.

TransAlta has reported Q4 earnings per share at $-0.2, which has decreased by 119.05% compared to Q3, which was 1.05. Its most recent dividend yield is at 2.08%, which has decreased by 0.08% from 2.16% in the previous 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: ENIC ETR GNE HE TAC

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