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.

Benzinga Insights has compiled a list of value stocks in the utilities sector that may be worth watching:

  1. Otter Tail OTTR – P/E: 9.94
  2. OGE Energy OGE – P/E: 8.01
  3. Central Puerto CEPU – P/E: 8.7
  4. Clearway Energy CWEN – P/E: 7.39
  5. Genie Energy GNE – P/E: 3.98

Otter Tail has reported Q3 earnings per share at $2.01, which has decreased by 1.95% compared to Q2, which was 2.05. Its most recent dividend yield is at 2.35%, which has decreased by 0.5% from 2.85% in the previous quarter.

OGE Energy’s earnings per share for Q2 sits at $0.36, whereas in Q1, they were at 1.39. The company’s most recent dividend yield sits at 4.25%, which has increased by 0.14% from 4.11% last quarter.

Central Puerto saw a decrease in earnings per share from 0.3 in Q1 to $0.13 now. This quarter, Clearway Energy experienced an increase in earnings per share, which was $-4.37 in Q2 and is now $0.28. Most recently, the company reported a dividend yield of 4.19%, which has increased by 0.35% from last quarter’s yield of 3.84%.

Genie Energy saw an increase in earnings per share from 0.67 in Q1 to $1.3 now. Most recently, the company reported a dividend yield of 3.33%, which has decreased by 1.39% from last quarter’s yield of 4.72%.

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.

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