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.
The following stocks are considered to be notable value stocks in the technology sector:
- Himax Technologies HIMX - P/E: 8.66
- BM Technologies BMTX - P/E: 4.39
- SunPower SPWR - P/E: 8.33
- Quhuo QH - P/E: 8.43
- Optical Cable OCC - P/E: 4.7
Himax Technologies saw an increase in earnings per share from 0.38 in Q1 to 0.62 now. The company's most recent dividend yield sits at 2.2%, which has increased by 0.97% from 1.23% last quarter.
This quarter, BM Technologies experienced a decrease in earnings per share, which was 0.25 in Q1 and is now 0.1. BM Technologies does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, SunPower experienced an increase in earnings per share, which was 0.05 in Q1 and is now 0.06. SunPower does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Quhuo reported earnings per share at 0.04, whereas in Q1 earnings per share sat at -0.28. Quhuo does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Optical Cable experienced a decrease in earnings per share, which was 0.45 in Q2 and is now 0.05. Its most recent dividend yield is at 2.45%, which has ('', 'not changed') by 0.0% from 2.45% 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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