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:
- Dorian LPG (NYSE:LPG) - P/E: 6.81
- NACCO Industries (NYSE:NC) - P/E: 7.11
- Green Plains Partners (NASDAQ:GPP) - P/E: 8.57
- TransGlobe Energy (NASDAQ:TGA) - P/E: 7.98
- Teekay LNG Partners (NYSE:TGP) - P/E: 6.9
This quarter, Dorian LPG experienced an increase in earnings per share, which was 0.13 in Q1 and is now 0.25. The company's most recent dividend yield sits at 30.6%, which has decreased by 2.11% from 32.71% last quarter.
NACCO Industries's earnings per share for Q3 sits at 3.47, whereas in Q2, they were at 0.91. Most recently, the company reported a dividend yield of 2.4%, which has decreased by 0.48% from last quarter's yield of 2.88%.
Green Plains Partners saw a decrease in earnings per share from 0.44 in Q2 to 0.4 now. Most recently, the company reported a dividend yield of 12.34%, which has increased by 8.69% from last quarter's yield of 3.65%.
Most recently, TransGlobe Energy reported earnings per share at 0.51, whereas in Q2 earnings per share sat at 0.11. Its most recent dividend yield is at 4.9%, which has increased by 1.43% from 3.47% in the previous quarter.
Teekay LNG Partners's earnings per share for Q3 sits at 0.54, whereas in Q2, they were at 0.57. The company's most recent dividend yield sits at 6.71%, which has decreased by 1.28% from 7.99% last quarter.
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.
