A Look Into Communication Services Sector Value Stocks

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.

Below is a list of notable value stocks in the communication services sector:

1. Harte-Hanks HHS - P/E: 6.58
2. Verizon Communications VZ - P/E: 7.1
3. Urban One UONE - P/E: 5.85
4. AT&T T - P/E: 6.29
5. Sinclair Broadcast Group SBGI - P/E: 0.54

Most recently, Harte-Hanks reported earnings per share at $0.52, whereas in Q1 earnings per share sat at $0.39. Its most recent dividend yield is at 10.59%, which has increased by 0.76% from 9.83% in the previous quarter.

This quarter, Verizon Communications experienced an increase in earnings per share, which was $1.31 in Q2 and is now $1.32. Its most recent dividend yield is at 6.32%, which has increased by 1.34% from 4.98% in the previous quarter.

Urban One saw a decrease in earnings per share from 0.3 in Q1 to $0.28 now. Most recently, AT&T reported earnings per share at $0.68, whereas in Q2 earnings per share sat at $0.65. The company's most recent dividend yield sits at 7.24%, which has increased by 1.9% from 5.34% last quarter.

Sinclair Broadcast Group's earnings per share for Q2 sits at $-0.03, whereas in Q1, they were at 0.37. The company's most recent dividend yield sits at 4.55%, which has increased by 0.27% from 4.28% last 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.