What are 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 energy sector:
- Barnwell Industries (AMEX:BRN) - P/E: 3.53
- NACCO Industries (NYSE:NC) - P/E: 7.42
- Flex LNG (NYSE:FLNG) - P/E: 9.45
- Cosan (NYSE:CSAN) - P/E: 6.84
- Callon Petroleum (NYSE:CPE) - P/E: 8.7
Most recently, Barnwell Industries reported earnings per share at $0.11, whereas in Q4 earnings per share sat at $0.16. NACCO Industries saw a decrease in earnings per share from 3.47 in Q3 to $1.07 now. Most recently, the company reported a dividend yield of 2.72%, which has increased by 0.32% from last quarter's yield of 2.4%.
Flex LNG has reported Q4 earnings per share at $1.18, which has increased by 96.67% compared to Q3, which was 0.6. Most recently, the company reported a dividend yield of 13.7%, which has increased by 0.43% from last quarter's yield of 13.27%.
Most recently, Cosan reported earnings per share at $0.48, whereas in Q3 earnings per share sat at $1.34. Callon Petroleum has reported Q4 earnings per share at $2.66, which has decreased by 9.22% compared to Q3, which was 2.93.
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.
