The Meaning Behind 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.
Benzinga Insights has compiled a list of value stocks in the energy sector that may be worth watching:
- PermRock Royalty Trust PRT – P/E: 9.04
- Martin Midstream Partners MMLP – P/E: 6.55
- Green Plains Partners GPP – P/E: 7.8
- Pioneer Natural Resources PXD – P/E: 8.99
- Matador Resources MTDR – P/E: 6.87
This quarter, PermRock Royalty Trust experienced an increase in earnings per share, which was $0.21 in Q1 and is now $0.26. Its most recent dividend yield is at 15.21%, which has increased by 2.32% from 12.89% in the previous quarter.
Most recently, Martin Midstream Partners reported earnings per share at $-0.71, whereas in Q2 earnings per share sat at $0.17. The company’s most recent dividend yield sits at 0.71%, which has increased by 0.19% from 0.52% last quarter.
This quarter, Green Plains Partners experienced a decrease in earnings per share, which was $0.44 in Q2 and is now $0.43. Most recently, the company reported a dividend yield of 14.39%, which has increased by 0.28% from last quarter’s yield of 14.11%.
Pioneer Natural Resources saw a decrease in earnings per share from 9.36 in Q2 to $7.48 now. Its most recent dividend yield is at 8.6%, which has decreased by 6.43% from 15.03% in the previous quarter.
This quarter, Matador Resources experienced a decrease in earnings per share, which was $3.47 in Q2 and is now $2.68. Its most recent dividend yield is at 0.59%, which has decreased by 0.25% from 0.84% in the previous 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.