5 Value Stocks To Watch In The Communication Services Sector

Understanding Value Stocks

A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.

The following stocks are considered to be notable value stocks in the communication services sector:

1. Cango CANG - P/E: 1.96
2. Daily Journal DJCO - P/E: 8.58
3. Jiayin Gr JFIN - P/E: 9.06
4. Momo MOMO - P/E: 9.83
5. Tegna TGNA - P/E: 9.16

Cango's earnings per share for Q4 sits at 1.61, whereas in Q3, they were at 1.75. Cango does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Daily Journal has reported Q1 earnings per share at 42.93, which has increased by 85.92% compared to Q4, which was 23.09. Daily Journal does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Jiayin Gr looks to be undervalued. It possesses an EPS of 0.06, which has not changed since last quarter (Q3). Jiayin Gr does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Momo saw an increase in earnings per share from 0.44 in Q3 to 0.58 now. Momo does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Tegna experienced an increase in earnings per share, which was 0.59 in Q3 and is now 1.16. The company's most recent dividend yield sits at 2.04%, which has increased by 0.45% from 1.59% last quarter.

The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.