5 Value Stocks In The Communication Services Sector

What is 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.

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

1. Scienjoy Holding SJ - P/E: 9.43
2. AdTheorent Holding ADTH - P/E: 7.94
3. Xunlei XNET - P/E: 7.51
4. Urban One UONE - P/E: 7.78
5. Lendway LDWY - P/E: 1.13

Scienjoy Holding's earnings per share for Q1 sits at $0.02, whereas in Q4, they were at 0.04. AdTheorent Holding saw an increase in earnings per share from -0.06 in Q1 to $0.09 now. Xunlei saw an increase in earnings per share from 0.05 in Q4 to $0.08 now. This quarter, Urban One experienced a decrease in earnings per share, which was $0.08 in Q3 and is now $0.02. Lendway saw a decrease in earnings per share from 0.91 in Q1 to $-0.02 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.