A Look Into Utilities Sector Value Stocks
Portfolio Pulse from Benzinga Insights
Benzinga Insights identifies five notable value stocks in the utilities sector based on low P/E multiples, indicating potential undervaluation. Enel Chile (ENIC), TransAlta (TAC), Pampa Energia (PAM), Brookfield Renewable (BEPC), and Suburban Propane Partners (SPH) are highlighted for their attractive valuations and recent financial performance, including changes in earnings per share and dividend yields.
December 06, 2023 | 2:38 pm
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NEGATIVE IMPACT
Suburban Propane Partners, with a P/E of 8.9, experienced a decrease in both EPS and dividend yield, but is still highlighted as a value stock.
The negative trend in both EPS and dividend yield could lead to investor caution, potentially causing a short term dip in SPH's stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85
NEUTRAL IMPACT
Brookfield Renewable is considered a value stock with a P/E of 3.08, despite a decrease in EPS and an increase in dividend yield from the previous quarter.
BEPC's lower EPS could be a concern, but the increased dividend yield and low P/E may balance investor sentiment, leading to a neutral short term impact.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 85
NEUTRAL IMPACT
Pampa Energia, with a P/E of 5.93, reported a slight decrease in EPS from Q2 to Q3, but remains a value stock pick.
While PAM's EPS decreased slightly, its low P/E ratio keeps it in the value category, which may not significantly impact the stock price in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Enel Chile is recognized as a value stock with a P/E of 2.88, showing an increase in EPS from Q2 to Q3 and a high dividend yield, although slightly decreased from the previous quarter.
The low P/E ratio and increased EPS suggest that ENIC may be undervalued, which could attract investors seeking value, potentially driving the stock price up in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
TransAlta is listed as a value stock with a P/E of 5.09, significant growth in EPS from Q2 to Q3, and a stable dividend yield with a slight decrease.
The substantial increase in EPS and low P/E ratio could make TAC appealing to value investors, which may lead to a positive short term price movement.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90