The Meaning Behind Value Stocks
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.
The following stocks are considered to be notable value stocks in the energy sector:
- Chord Energy CHRD – P/E: 2.83
- Murphy Oil MUR – P/E: 6.26
- Black Stone Minerals BSM – P/E: 7.34
- Dynagas LNG Partners DLNG – P/E: 2.34
- Alliance Res Partners ARLP – P/E: 4.82
This quarter, Chord Energy experienced a decrease in earnings per share, which was $7.2 in Q3 and is now $5.28. The company’s most recent dividend yield sits at 14.86%, which has increased by 11.63% from 3.23% last quarter.
Murphy Oil has reported Q4 earnings per share at $1.1, which has decreased by 40.22% compared to Q3, which was 1.84. Its most recent dividend yield is at 2.57%, which has increased by 0.15% from 2.42% in the previous quarter.
This quarter, Black Stone Minerals experienced an increase in earnings per share, which was $0.75 in Q3 and is now $0.82. Its most recent dividend yield is at 11.67%, which has increased by 1.2% from 10.47% in the previous quarter.
Most recently, Dynagas LNG Partners reported earnings per share at $0.04, whereas in Q2 earnings per share sat at $0.17. The company’s most recent dividend yield sits at 11.0%, which has increased by 4.95% from 6.05% last quarter.
Alliance Res Partners saw an increase in earnings per share from 1.25 in Q3 to $1.63 now. The company’s most recent dividend yield sits at 13.65%, which has increased by 5.33% from 8.32% last quarter.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.