A Look Into Communication Services Sector Value Stocks

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.

Benzinga Insights has compiled a list of value stocks in the communication services sector that may be worth watching:

1. MSG Networks MSGN - P/E: 5.13
2. Momo MOMO - P/E: 9.18
3. Tegna TGNA - P/E: 8.26
4. Gray Television GTN - P/E: 6.6
5. Loral Space LORL - P/E: 4.64

MSG Networks's earnings per share for Q3 sits at 0.78, whereas in Q2, they were at 0.72. MSG Networks does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Momo experienced an increase in earnings per share, which was 0.44 in Q3 and is now 0.58. Momo does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Tegna has reported Q1 earnings per share at 0.52, which has decreased by 55.17% compared to Q4, which was 1.16. Its most recent dividend yield is at 2.04%, which has increased by 0.45% from 1.59% in the previous quarter.

Gray Television has reported Q1 earnings per share at 0.27, which has decreased by 88.05% compared to Q4, which was 2.26. The company's most recent dividend yield sits at 1.38%, which has decreased by 0.23% from 1.61% last quarter.

Loral Space has reported Q1 earnings per share at 0.98, which has decreased by 65.85% compared to Q4, which was 2.87. Loral Space does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.