5 Value Stocks To Watch In The Utilities Sector

What Defines a Value Stock?

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. China Recycling Energy CREG - P/E: 3.36
2. Pampa Energia PAM - P/E: 3.47
3. Kenon Hldgs KEN - P/E: 4.01
4. PG&E PCG - P/E: 5.04
5. Energy Co of Minas Gerais CIG - P/E: 7.97

Most recently, China Recycling Energy reported earnings per share at -0.16, whereas in Q1 earnings per share sat at -0.09. China Recycling Energy does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Pampa Energia's earnings per share for Q2 sits at 1.94, whereas in Q1, they were at 0.58. Pampa Energia does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Kenon Hldgs experienced a decrease in earnings per share, which was 3.34 in Q1 and is now 3.2. Kenon Hldgs does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

PG&E's earnings per share for Q2 sits at 0.27, whereas in Q1, they were at 0.23. Most recently, the company reported a dividend yield of 3.06%, which has decreased by 0.04% from last quarter's yield of 3.1%.

Energy Co of Minas Gerais has reported Q2 earnings per share at 0.22, which has increased by 340.0% compared to Q1, which was 0.05. Energy Co of Minas Gerais 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.