Benzinga | Jan 5, 2022 10:03AM EST

Overview Of Value Stocks In The Utilities 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.

The following stocks are considered to be notable value stocks in the utilities sector:

2 Suburban Propane Partners (NYSE:SPH) - P/E: 7.87

4 NRG Energy (NYSE:NRG) - P/E: 4.27

6 Kenon Hldgs (NYSE:KEN) - P/E: 4.1

8 China Recycling Energy (NASDAQ:CREG) - P/E: 2.94

10 Pampa Energia (NYSE:PAM) - P/E: 2.91

Suburban Propane Partners has reported Q4 earnings per share at -0.19, which has decreased by 18.75% compared to Q3, which was -0.16. Its most recent dividend yield is at 8.14%, which has decreased by 0.42% from 8.56% in the previous quarter.

NRG Energy has reported Q3 earnings per share at 6.6, which has increased by 50.0% compared to Q2, which was 4.4. Its most recent dividend yield is at 3.13%, which has decreased by 0.2% from 3.33% in the previous quarter.

Kenon Hldgs saw an increase in earnings per share from 3.2 in Q2 to 3.45 now. China Recycling Energy saw an increase in earnings per share from -0.16 in Q2 to -0.08 now. This quarter, Pampa Energia experienced an increase in earnings per share, which was 1.94 in Q2 and is now 2.36.

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.