5 Value Stocks To Watch In The Utilities Sector
Portfolio Pulse from Benzinga Insights
The article highlights five value stocks in the utilities sector based on their low price-to-earnings (P/E) multiples, suggesting potential undervaluation. The stocks mentioned are Altus Power (AMPS), Pampa Energia (PAM), TransAlta (TAC), Hawaiian Electric Industries (HE), and Enel Chile (ENIC). Recent earnings per share (EPS) and dividend yield changes are reported for each company, indicating their financial performance and investor returns.
November 29, 2023 | 2:38 pm
News sentiment analysis
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NEGATIVE IMPACT
Pampa Energia, with a P/E of 5.73, saw a decrease in EPS from Q2 to Q3. The low P/E suggests undervaluation, but the EPS drop could concern investors.
PAM's low P/E ratio indicates undervaluation, but the EPS decrease may lead to negative short-term sentiment.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 80
NEUTRAL IMPACT
Altus Power has a low P/E of 8.8 but reported a slight decrease in EPS from Q2 to Q3. This could indicate a potential undervaluation.
While AMPS has a low P/E ratio, the slight decrease in EPS may temper short-term investor enthusiasm, leading to a neutral impact.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 80
NEUTRAL IMPACT
Enel Chile has the lowest P/E at 2.84 and reported an increase in EPS, but a significant decrease in dividend yield could raise concerns among investors.
ENIC's extremely low P/E and higher EPS are attractive, but the substantial dividend yield decrease might offset the potential positive impact.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Hawaiian Electric Industries reported an increase in EPS and a slight increase in dividend yield, with a P/E of 6.58, which may appeal to value investors.
HE's improved EPS and dividend yield, along with a reasonable P/E ratio, could positively influence its stock price in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
TransAlta's P/E of 5.14 and increase in EPS from Q2 to Q3, coupled with a slight decrease in dividend yield, may attract investors looking for value.
TAC's increased EPS and low P/E ratio are positive signs, although the minor dividend yield decrease is a factor to consider.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80