In light of gasoline prices hitting a new record high, five energy stocks with high dividend yields and GF Scores are Magellan Midstream Partners LP (MMP, Financial), Enterprise Products Partners LP (EPD, Financial), TotalEnergies SE (TTE, Financial), ONEOK Inc. (OKE, Financial) and Star Group LP (SGU, Financial) according to the All-in-One Screener, a Premium feature of GuruFocus.
According to AAA, the national average price of regular gasoline is approximately $4.37 per gallon, a new all-time high and up $1.41 per gallon from a year ago. The national average price of gasoline eclipsed $4 per gallon in March for the first time since 2008.
While the markets continue falling on renewed Covid-19 surges and geopolitical turmoil in Asia and Europe, the energy sector has gained over 20% year to date. On the other hand, the Standard & Poor’s 500 index has tumbled approximately 16.26% over the same period.
GuruFocus’ All-in-One Screener listed several energy companies that have a dividend yield of at least 3.1%, are modestly undervalued based on Tuesday’s price-to-GF Value ratio and have a GF Score of at least 80 out of 100.
Magellan Midstream Partners
Shares of Magellan Midstream Partners (MMP, Financial) traded around $47.71, showing the stock is modestly undervalued based on Tuesday’s price-to-GF Value ratio of 0.87. The stock’s dividend yield of 8.68% outperforms more than 86.41% of global competitors.
The Tulsa, Oklahoma-based energy company has a GF Score of 84 out of 100, driven by a momentum rank of 10 out of 10 and a rank of 9 out of 10 for profitability and GF Value despite growth ranking 6 out of 10 and financial strength ranking just 3 out of 10.
Gurus with holdings in Magellan Midstream Partners include First Eagle Investment (Trades, Portfolio) and George Soros (Trades, Portfolio)’ Soros Fund Management.
Enterprise Products Partners
Shares of Enterprise Products Partners (EPD, Financial) traded around $25.78, showing the stock is modestly undervalued based on Tuesday’s price-to-GF Value ratio of 0.79. The stock’s dividend yield of 7.09% outperforms over 78% of global competitors.
The Houston-based energy company has a GF Score of 87 out of 100, driven by a rank of 9 out of 10 for GF Value and momentum and a rank between 7 and 8 for profitability and growth despite financial strength ranking just 5 out of 10.
Gurus with holdings in Enterprise Products Partners include Bruce Berkowitz (Trades, Portfolio)’s Fairholme Capital Management and David Tepper (Trades, Portfolio)’s Appaloosa LP.
TotalEnergies
Shares of TotalEnergies (TTE, Financial) traded around $50.81, showing the stock is modestly undervalued based on Tuesday’s price-to-GF Value ratio of 0.81. The stock’s dividend yield of 5.85% outperforms more than 70% of global competitors.
The French energy company has a GF Score of 80 out of 100 based on a momentum rank of 10 out of 10, a GF Value rank of 9 out of 10, a profitability rank of 7 out of 10, a financial strength rank of 6 out of 10 and a growth rank of 4 out of 10.
ONEOK
Shares of ONEOK (OKE, Financial) traded around $62.87, showing the stock is modestly undervalued based on Tuesday’s price-to-GF Value ratio of 0.71. However, the GF Value Line suggests it is a possible value trap currently since its five-year revenue growth rate is low. As such, invesetors should do thorough research before making a decision.
The Tulsa, Oklahoma-based natural gas company has a GF Score of 80 out of 100 based on a GF Value rank of 10 out of 10, a momentum rank of 9 out of 10 and a profitability rank of 7 out of 10 despite financial strength and growth ranking between 4 and 5 out of 10.
Star Group
Shares of Star Group (SGU, Financial) traded around $10.14, showing the stock is modestly undervalued based on Tuesday’s price-to-GF Value ratio of 0.76. The stock’s dividend yield of 5.68% outperforms more than 66% of global competitors.
The Stamford, Connecticut-based home heating oil products company has a GF Score of 89 out of 100, driven by a momentum rank of 10 out of 10, a GF Value rank of 9 out of 10 and a rank of 8 out of 10 for profitability and growth despite having a financial strength rank of just 5 out of 10.
