A Look Into Communication Services Sector Value Stocks

What are Value Stocks?

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.

Benzinga Insights has compiled a list of value stocks in the communication services sector that may be worth watching:

1. AMC Networks AMCX - P/E: 6.15
2. AT&T T - P/E: 8.24
3. Verizon Communications VZ - P/E: 9.76
4. Urban One UONE - P/E: 9.83
5. Millicom Intl Cellular TIGO - P/E: 4.2

AMC Networks has reported Q4 earnings per share at $0.54, which has decreased by 79.85% compared to Q3, which was 2.68. Most recently, AT&T reported earnings per share at $0.77, whereas in Q4 earnings per share sat at $0.78. Its most recent dividend yield is at 4.77%, which has decreased by 4.61% from 9.38% in the previous quarter.

Verizon Communications has reported Q1 earnings per share at $1.35, which has increased by 3.05% compared to Q4, which was 1.31. The company's most recent dividend yield sits at 4.73%, which has decreased by 0.41% from 5.14% last quarter.

Urban One has reported Q4 earnings per share at $0.12, which has decreased by 52.0% compared to Q3, which was 0.25. Most recently, Millicom Intl Cellular reported earnings per share at $-0.27, whereas in Q3 earnings per share sat at $0.05.

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.