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The Meaning Behind Value Stocks

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. Smart Powerr CREG – P/E: 1.58
  2. Kenon Hldgs KEN – P/E: 1.6
  3. NRG Energy NRG – P/E: 2.29
  4. Pampa Energia PAM – P/E: 3.09
  5. OGE Energy OGE – P/E: 8.02

This quarter, Smart Powerr experienced an increase in earnings per share, which was $-0.16 in Q2 and is now $-0.08. Kenon Hldgs’s earnings per share for Q1 sits at $11.86, whereas in Q4, they were at 7.28. Most recently, NRG Energy reported earnings per share at $7.17, whereas in Q4 earnings per share sat at $-1.74. Most recently, the company reported a dividend yield of 3.53%, which has decreased by 0.1% from last quarter’s yield of 3.63%.

Pampa Energia’s earnings per share for Q1 sits at $1.79, whereas in Q4, they were at 0.7. Most recently, OGE Energy reported earnings per share at $1.39, whereas in Q4 earnings per share sat at $0.27. The company’s most recent dividend yield sits at 4.11%, which has decreased by 0.45% from 4.56% last quarter.

These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.

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