Overview Of Value Stocks In The Technology Sector

The Meaning Behind 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.

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

1. Koss KOSS - P/E: 4.83
2. Silicon Motion Technology SIMO - P/E: 2.96
3. Taitron Components TAIT - P/E: 6.08
4. Cellebrite DI CLBT - P/E: 9.86
5. Telesat TSAT - P/E: 8.29

Koss has reported Q2 earnings per share at $-0.12, which has decreased by 111.88% compared to Q1, which was 1.01. Most recently, the company reported a dividend yield of 4.25%, which has decreased by 0.35% from last quarter's yield of 4.6%.

This quarter, Silicon Motion Technology experienced a decrease in earnings per share, which was $1.53 in Q3 and is now $1.22. Most recently, the company reported a dividend yield of 2.33%, which has decreased by 0.63% from last quarter's yield of 2.96%.

Taitron Components has reported Q3 earnings per share at $0.08, which has decreased by 20.0% compared to Q2, which was 0.1. The company's most recent dividend yield sits at 5.29%, which has increased by 0.17% from 5.12% last quarter.

Most recently, Cellebrite DI reported earnings per share at $0.08, whereas in Q3 earnings per share sat at $0.01. This quarter, Telesat experienced a decrease in earnings per share, which was $-0.13 in Q2 and is now $-3.6.

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.