Benzinga | Nov 10, 2021 09:40AM EST

Overview Of Value Stocks In The Utilities Sector

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.

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

2 Companhia De Saneamento (NYSE:SBS) - P/E: 9.94

4 Energy Co of Minas Gerais (NYSE:CIG) - P/E: 5.74

6 UGI (NYSE:UGI) - P/E: 9.85

8 Suburban Propane Partners (NYSE:SPH) - P/E: 9.73

10 China Recycling Energy (NASDAQ:CREG) - P/E: 3.31

Companhia De Saneamento has reported Q2 earnings per share at 0.21, which has increased by 61.54% compared to Q1, which was 0.13. Most recently, the company reported a dividend yield of 2.94%, which has decreased by 0.83% from last quarter's yield of 3.77%.

This quarter, Energy Co of Minas Gerais experienced an increase in earnings per share, which was 0.05 in Q1 and is now 0.22. Energy Co of Minas Gerais does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

UGI saw a decrease in earnings per share from 1.99 in Q2 to 0.13 now. Most recently, the company reported a dividend yield of 2.96%, which has decreased by 0.16% from last quarter's yield of 3.12%.

This quarter, Suburban Propane Partners experienced a decrease in earnings per share, which was 2.02 in Q2 and is now -0.16. The company's most recent dividend yield sits at 8.14%, which has decreased by 0.42% from 8.56% last quarter.

China Recycling Energy has reported Q2 earnings per share at -0.16, which has decreased by 77.78% compared to Q1, which was -0.09. China Recycling Energy does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.