What Defines 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:
- Bel Fuse BELFA - P/E: 8.75
- 3D Sys DDD - P/E: 9.08
- LG Display Co LPL - P/E: 5.54
- Sanmina SANM - P/E: 9.75
- GSE Systems GVP - P/E: 2.81
Bel Fuse has reported Q3 earnings per share at 0.48, which has decreased by 25.0% compared to Q2, which was 0.64. Its most recent dividend yield is at 1.61%, which has increased by 0.27% from 1.34% in the previous quarter.
Most recently, 3D Sys reported earnings per share at 0.08, whereas in Q2 earnings per share sat at 0.12. 3D Sys does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
LG Display Co's earnings per share for Q3 sits at 0.56, whereas in Q2, they were at 0.53. LG Display Co does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Sanmina saw a decrease in earnings per share from 0.99 in Q3 to 0.95 now. Sanmina does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
GSE Systems has reported Q3 earnings per share at -0.01, which has increased by 66.67% compared to Q2, which was -0.03. GSE Systems does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
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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