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.
The following stocks are considered to be notable value stocks in the technology sector:
- Amtech Systems ASYS - P/E: 9.26
- Vishay Intertechnology VSH - P/E: 9.01
- Yalla Group YALA - P/E: 9.7
- Gen Digital GEN - P/E: 8.48
- TSR TSRI - P/E: 9.51
This quarter, Amtech Systems experienced an increase in earnings per share, which was $-0.2 in Q1 and is now $0.19. Most recently, Vishay Intertechnology reported earnings per share at $0.79, whereas in Q4 earnings per share sat at $0.69. The company's most recent dividend yield sits at 1.57%, which has decreased by 0.3% from 1.87% last quarter.
Yalla Group saw an increase in earnings per share from 0.12 in Q4 to $0.14 now. Gen Digital's earnings per share for Q4 sits at $0.46, whereas in Q3, they were at 0.45. The company's most recent dividend yield sits at 2.9%, which has increased by 0.76% from 2.14% last quarter.
TSR saw a decrease in earnings per share from 0.3 in Q2 to $0.04 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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