5 Value Stocks To Watch In The Energy Sector
Portfolio Pulse from Benzinga Insights
Benzinga Insights has identified five value stocks in the energy sector based on low P/E ratios, indicating potential undervaluation. Callon Petroleum (CPE), Smart Sand (SND), Chesapeake Energy (CHK), Diamondback Energy (FANG), and Global Partners (GLP) are highlighted for their notable P/E multiples. The article provides recent earnings per share (EPS) data and dividend yield changes for these companies, suggesting varied performance within the sector.
December 14, 2023 | 2:39 pm
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POSITIVE IMPACT
Chesapeake Energy's P/E is 2.03, with a significant increase in EPS from $0.64 to $1.09, but a decrease in dividend yield from 2.69% to 0.42%.
The substantial increase in EPS and low P/E ratio are likely to be viewed positively by investors, although the reduced dividend yield could offset some of the positive impact.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 90
POSITIVE IMPACT
Diamondback Energy has a P/E of 8.48 and reported an increase in EPS from $3.68 to $5.49 this quarter.
The positive EPS growth is a strong indicator of financial health, which could lead to a positive short-term impact on the stock price, despite a higher P/E compared to peers.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 80
POSITIVE IMPACT
Smart Sand, with a P/E of 6.27, saw a slight increase in EPS from $0.17 to $0.18 recently.
The increase in EPS is a positive sign, which, combined with a low P/E ratio, could lead to a positive short-term impact on the stock price.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 70
NEUTRAL IMPACT
Callon Petroleum has a low P/E of 2.92 but experienced a decrease in EPS from $1.99 to $1.82 in the latest quarter.
While the low P/E ratio suggests undervaluation, the decrease in EPS could temper short-term investor enthusiasm, leading to a neutral impact.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEUTRAL IMPACT
Global Partners has a P/E of 9.95, with a decrease in EPS from $1.05 to $0.6, but an increase in dividend yield from 8.33% to 9.28%.
The decrease in EPS could be a concern for investors, but the high dividend yield may attract income-focused investors, leading to a neutral short-term impact.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70