What Defines 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 technology sector:
- Vishay Intertechnology VSH - P/E: 9.2
- JinkoSolar Holding Co JKS - P/E: 3.45
- MIND C.T.I. MNDO - P/E: 7.88
- Immersion IMMR - P/E: 5.47
- Koss KOSS - P/E: 4.11
This quarter, Vishay Intertechnology experienced a decrease in earnings per share, which was $0.79 in Q1 and is now $0.68. Its most recent dividend yield is at 1.49%, which has decreased by 0.08% from 1.57% in the previous quarter.
JinkoSolar Holding Co saw an increase in earnings per share from 2.31 in Q1 to $3.52 now. Most recently, MIND C.T.I. reported earnings per share at $0.06, whereas in Q1 earnings per share sat at $0.07. Most recently, the company reported a dividend yield of 10.32%, which has increased by 1.62% from last quarter's yield of 8.7%.
Most recently, Immersion reported earnings per share at $0.28, whereas in Q1 earnings per share sat at $0.33. The company's most recent dividend yield sits at 1.67%, which has decreased by 0.12% from 1.79% last quarter.
Koss looks to be undervalued. It possesses an EPS of $-0.03, which has not changed since last quarter (Q3). 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%.
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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