5 Value Stocks In The Technology Sector

What Defines 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.

The following stocks are considered to be notable value stocks in the technology sector:

1. HP HPQ - P/E: 7.31
2. GoPro GPRO - P/E: 4.61
3. Dell Technologies DELL - P/E: 6.91
4. Hewlett Packard HPE - P/E: 6.59
5. Sigmatron International SGMA - P/E: 2.78

This quarter, HP experienced a decrease in earnings per share, which was 1.0 in Q3 and is now 0.94. Most recently, the company reported a dividend yield of 3.19%, which has increased by 0.53% from last quarter's yield of 2.66%.

Most recently, GoPro reported earnings per share at 0.34, whereas in Q2 earnings per share sat at 0.12. Most recently, Dell Technologies reported earnings per share at 2.37, whereas in Q2 earnings per share sat at 2.24. Its most recent dividend yield is at 3.75%, which has increased by 1.44% from 2.31% in the previous quarter.

Hewlett Packard saw an increase in earnings per share from 0.47 in Q3 to 0.52 now. The company's most recent dividend yield sits at 3.29%, which has increased by 0.16% from 3.13% last quarter.

Sigmatron International has been featured as a value stock. Sigmatron International's Q2 EPS sits at 0.69, which has not changed since last quarter (Q1).

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.