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 technology sector:
- Aviat Networks AVNW - P/E: 3.27
- Bel Fuse BELFA - P/E: 8.82
- SunPower SPWR - P/E: 8.75
- Bel Fuse BELFB - P/E: 8.03
- Network-1 Technologies NTIP - P/E: 9.11
Most recently, Aviat Networks reported earnings per share at 0.49, whereas in Q2 earnings per share sat at 1.48. Aviat Networks does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Bel Fuse experienced a decrease in earnings per share, which was 0.18 in Q4 and is now -0.23. Most recently, the company reported a dividend yield of 1.34%, which has decreased by 0.1% from last quarter's yield of 1.44%.
SunPower's earnings per share for Q1 sits at 0.05, whereas in Q4, they were at 0.14. SunPower does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Bel Fuse reported earnings per share at -0.23, whereas in Q4 earnings per share sat at 0.2. The company's most recent dividend yield sits at 1.56%, which has decreased by 0.11% from 1.67% last quarter.
Network-1 Technologies has reported Q1 earnings per share at 0.38, which has increased by 733.33% compared to Q4, which was -0.06. The company's most recent dividend yield sits at 2.75%, which has decreased by 1.77% from 4.52% 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.
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