Benzinga | Oct 6, 2021 11:31AM EDT

5 Value Stocks To Watch In The Utilities Sector

What is 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.

Below is a list of notable value stocks in the utilities sector:

2 Pampa Energia (NYSE:PAM) - P/E: 3.08

4 Energy Co of Minas Gerais (NYSE:CIG) - P/E: 7.66

6 PG&E (NYSE:PCG) - P/E: 4.45

8 Kenon Hldgs (NYSE:KEN) - P/E: 3.72

10 UGI (NYSE:UGI) - P/E: 9.74

Pampa Energia saw an increase in earnings per share from 0.58 in Q1 to 1.94 now. Pampa Energia does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, Energy Co of Minas Gerais reported earnings per share at 0.22, whereas in Q1 earnings per share sat at 0.05. Energy Co of Minas Gerais does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, PG&E reported earnings per share at 0.27, whereas in Q1 earnings per share sat at 0.23. Its most recent dividend yield is at 3.06%, which has decreased by 0.04% from 3.1% in the previous quarter.

Kenon Hldgs's earnings per share for Q2 sits at 3.2, whereas in Q1, they were at 3.34. Kenon Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, UGI experienced a decrease in earnings per share, which was 1.99 in Q2 and is now 0.13. The company's most recent dividend yield sits at 2.96%, which has decreased by 0.16% from 3.12% 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.