A value stock usually 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 interest in such companies. The price-to- earnings multiple, or P E, is the most commonly used way to check for value. A low P E multiple is a good indication that the stock is undervalued.
The following stocks are considered to be notable value stocks in the energy sector:
Vermilion Energy reported earnings per share at - 0.72, whereas in Q 2 earnings per share was 2.27. The company's dividend yield is at 28.87%, which has increased by 14.13% from 14.74% last quarter.
Dorian LPG's earnings per share for Q 2 is 0.25, whereas in Q 1 they were at 0.13. The dividend yield was 30.6% last quarter, which has decreased by 2.11% from the previous quarter's yield of 32.71%.
Sunoco saw a decrease in earnings per share from 1.73 in Q 2 to 1.0 now. Its most recent dividend yield is 7.69%, which has decreased by 0.22% from 7.91% in the previous quarter.
Star Group reported its earnings per share at - 0.58, while its Q 3 earnings per share was 0.3. The dividend yield was 5.42% a year ago, a gain of 0.07% from the previous quarter's yield of 5.35%.
Dynagas LNG Partners saw an increase in earnings per share from 0.2 in Q 2 to 0.24 now. Its most recent dividend yield is 11.0%, which has increased by 4.95% from 6.05% in the previous quarter.
A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that it may never materialize.