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:
- PBF Logistics (NYSE:PBFX) - P/E: 5.89
- VAALCO Energy (NYSE:EGY) - P/E: 5.62
- Adams Resources & Energy (AMEX:AE) - P/E: 8.78
- Oasis Midstream Partners (NASDAQ:OMP) - P/E: 6.57
- NACCO Industries (NYSE:NC) - P/E: 7.14
This quarter, PBF Logistics experienced a decrease in earnings per share, which was 0.64 in Q2 and is now 0.58. The company's most recent dividend yield sits at 8.75%, which has decreased by 0.4% from 9.15% last quarter.
VAALCO Energy saw an increase in earnings per share from 0.14 in Q2 to 0.17 now. Most recently, Adams Resources & Energy reported earnings per share at 0.41, whereas in Q2 earnings per share sat at 0.44. The company's most recent dividend yield sits at 2.92%, which has decreased by 0.64% from 3.56% last quarter.
Oasis Midstream Partners has reported Q3 earnings per share at 0.77, which has increased by 6.94% compared to Q2, which was 0.72. Its most recent dividend yield is at 9.2%, which has decreased by 1.08% from 10.28% in the previous quarter.
NACCO Industries saw an increase in earnings per share from 0.91 in Q2 to 3.47 now. 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%.
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.
