Understanding Value Stocks
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.
Benzinga Insights has compiled a list of value stocks in the technology sector that may be worth watching:
- Bel Fuse BELFA - P/E: 9.11
- Bit Digital BTBT - P/E: 9.95
- WidePoint WYY - P/E: 5.93
- Cheetah Mobile CMCM - P/E: 5.14
- QIWI QIWI - P/E: 4.76
Bel Fuse saw a decrease in earnings per share from 0.18 in Q4 to -0.23 now. The company's most recent dividend yield sits at 1.34%, which has decreased by 0.1% from 1.44% last quarter.
Bit Digital saw an increase in earnings per share from 0.02 in Q4 to 0.74 now. Bit Digital does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, WidePoint reported earnings per share at 0.06, whereas in Q4 earnings per share sat at 0.96. WidePoint does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Cheetah Mobile has reported Q4 earnings per share at 0.07, which has decreased by 74.07% compared to Q3, which was 0.27. Cheetah Mobile does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, QIWI reported earnings per share at 0.44, whereas in Q4 earnings per share sat at 0.55. Its most recent dividend yield is at 8.01%, which has decreased by 3.51% from 11.52% in the previous 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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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