What is a Value Stock?
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:
- Bel Fuse BELFA - P/E: 8.45
- Sanmina SANM - P/E: 9.79
- Aviat Networks AVNW - P/E: 4.14
- Turtle Beach HEAR - P/E: 9.32
- Network-1 Technologies NTIP - P/E: 8.08
Bel Fuse has reported Q2 earnings per share at 0.64, which has increased by 378.26% compared to Q1, which was -0.23. Most recently, the company reported a dividend yield of 1.61%, which has increased by 0.27% from last quarter's yield of 1.34%.
This quarter, Sanmina experienced a decrease in earnings per share, which was 1.01 in Q2 and is now 0.99. Sanmina does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Aviat Networks's earnings per share for Q3 sits at 0.49, whereas in Q2, they were at 1.48. Aviat Networks does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Turtle Beach's earnings per share for Q2 sits at 0.14, whereas in Q1, they were at 0.52. Turtle Beach does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Network-1 Technologies saw an increase in earnings per share from -0.06 in Q4 to 0.38 now. Its most recent dividend yield is at 2.75%, which has decreased by 1.77% from 4.52% 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.
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