5 Value Stocks In The Energy Sector
Portfolio Pulse from Benzinga Insights
The article identifies five value stocks in the energy sector based on their low P/E ratios, suggesting they may be undervalued. Coterra Energy (CTRA), Petrobras Brasileiro (PBR), Murphy Oil (MUR), RPC (RES), and ProPetro Holding (PUMP) are highlighted. The article provides recent earnings per share (EPS) data and dividend yield changes for these companies, indicating mixed financial performance in the recent quarter.
January 04, 2024 | 2:39 pm
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NEGATIVE IMPACT
RPC has a P/E of 6.55 but experienced a sharp 73.33% decrease in EPS from $0.3 to $0.08, although its dividend yield increased slightly from 1.79% to 1.84%.
The dramatic drop in EPS is a significant concern that could overshadow the low P/E ratio and the small increase in dividend yield, potentially leading to a negative short-term impact on the stock price.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
Petrobras Brasileiro has a very low P/E of 4.02 but reported a 6.67% decrease in EPS from $0.9 to $0.84 in Q3.
The low P/E ratio suggests undervaluation, but the decrease in EPS could be a concern for short-term investors.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
ProPetro Holding, with a P/E of 8.01, saw a decrease in EPS from $0.34 in Q2 to $0.31 in the current quarter.
The decrease in EPS is relatively small and may not significantly impact the stock price, especially given the already low P/E ratio.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Coterra Energy has a low P/E of 8.96 and showed an increase in EPS from $0.39 to $0.5 this quarter, but its dividend yield slightly decreased from 2.9% to 2.85%.
The increase in EPS is a positive sign for Coterra Energy's profitability, which could attract investors despite a slight decrease in dividend yield.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Murphy Oil, with a P/E of 9.11, saw a significant increase in EPS from $0.79 to $1.59, but experienced a slight decrease in dividend yield from 2.56% to 2.48%.
The substantial increase in EPS could indicate strong financial health and potential for stock appreciation, offsetting the minor negative impact of the reduced dividend yield.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80