5 Value Stocks In The Communication Services Sector

What are 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.

Below is a list of notable value stocks in the communication services sector:

1. Baidu BIDU - P/E: 8.47
2. Gray Television GTN - P/E: 6.27
3. MSG Networks MSGN - P/E: 4.82
4. ViacomCBS VIAC - P/E: 9.22
5. Nexstar Media Group NXST - P/E: 7.71

Baidu has reported Q1 earnings per share at 1.89, which has decreased by 38.64% compared to Q4, which was 3.08. Baidu does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Gray Television's earnings per share for Q1 sits at 0.27, whereas in Q4, they were at 2.26. Its most recent dividend yield is at 1.38%, which has decreased by 0.23% from 1.61% in the previous quarter.

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.

Most recently, ViacomCBS reported earnings per share at 1.52, whereas in Q4 earnings per share sat at 1.04. Most recently, the company reported a dividend yield of 2.35%, which has increased by 0.59% from last quarter's yield of 1.76%.

Nexstar Media Group's earnings per share for Q1 sits at 4.42, whereas in Q4, they were at 7.97. The company's most recent dividend yield sits at 1.86%, which has decreased by 0.7% from 2.56% 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.