Husky Energy (TSX:HSE) stock rose 1.05% on July 4. The stock hit a 52-week low of $12.18 over the past week. Energy stocks have suffered due to choppy oil prices. The bear market for oil kicked off in June.
Prices momentarily spiked after a U.S.-China trade truce, but oil has since retreated into the first trading week of July.
Value and income investors should take interest in Husky’s low price right now. The company had a strong first quarter as profit rose $248 million from the prior year to $328 million.
However, production did fall to 285,200 barrels of oil equivalent due to the mandated Alberta government production cuts. This decision split opinion among Canada’s energy giants. Husky CEO Rob Peabody recently said that the cuts have created a secondary market for oil.
Husky’s price-to-earnings of 8.5 put it in a favourable spot relative to industry peers. The stock had an RSI of 46 at the time of this writing.
This puts Husky in neutral territory, having recovered in the later days of the current trading week. There is reason to be enticed for value investors right now.
That holds true for income investors as well. Husky last paid out a quarterly dividend of $0.125 per share.
That represents a solid 3.9% yield at the time of this writing. This is a middling yield compared to some of the stronger income-generating stocks in the energy sector, but still worth holding when we take its value into account at the current price.
