What is a Value Stock?
A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.
Below is a list of notable value stocks in the communication services sector:
- Mobile TeleSystems MBT - P/E: 7.99
- Hello Gr MOMO - P/E: 6.28
- Verizon Communications VZ - P/E: 9.9
- Scienjoy Holding SJ - P/E: 7.81
- HUYA HUYA - P/E: 9.49
Mobile TeleSystems has been featured as a value stock. Mobile TeleSystems's Q3 EPS sits at 0.27, which has not changed since last quarter (Q2). The company's most recent dividend yield sits at 4.86%, which has decreased by 10.69% from 15.55% last quarter.
Most recently, Hello Gr reported earnings per share at 0.42, whereas in Q2 earnings per share sat at 0.39. Verizon Communications has reported Q3 earnings per share at 1.41, which has increased by 2.92% compared to Q2, which was 1.37. Most recently, the company reported a dividend yield of 5.14%, which has increased by 0.48% from last quarter's yield of 4.66%.
Scienjoy Holding saw a decrease in earnings per share from 0.47 in Q2 to 0.27 now. HUYA saw a decrease in earnings per share from 0.16 in Q2 to 0.12 now.
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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