Benzinga | Jun 3, 2021 09:49AM EDT

5 Value Stocks To Watch In The Energy Sector

What Defines a Value Stock?

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.

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

2 Sunoco (NYSE:SUN) - P/E: 7.26

4 Hoegh LNG Partners (NYSE:HMLP) - P/E: 8.61

6 Petrobras Brasileiro (NYSE:PBR) - P/E: 6.73

8 Oasis Petroleum (NASDAQ:OAS) - P/E: 3.2

10 China Petroleum (NYSE:SNP) - P/E: 6.07

Sunoco has reported Q1 earnings per share at 1.6, which has increased by 81.82% compared to Q4, which was 0.88. Most recently, the company reported a dividend yield of 10.18%, which has decreased by 0.71% from last quarter's yield of 10.89%.

Most recently, Hoegh LNG Partners reported earnings per share at 0.61, whereas in Q4 earnings per share sat at 0.46. The company's most recent dividend yield sits at 11.1%, which has increased by 0.3% from 10.8% last quarter.

This quarter, Petrobras Brasileiro experienced an increase in earnings per share, which was -0.7 in Q4 and is now 0.01. The company's most recent dividend yield sits at 13.66%, which has increased by 9.56% from 4.1% last quarter.

Oasis Petroleum saw an increase in earnings per share from 1.22 in Q4 to 4.34 now. Oasis Petroleum does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

China Petroleum's earnings per share for Q1 sits at 0.02, whereas in Q4, they were at 0.01. Its most recent dividend yield is at 6.65%, which has increased by 1.99% from 4.66% 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.