Overview Of Value Stocks In The Communication Services 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.

Benzinga Insights has compiled a list of value stocks in the communication services sector that may be worth watching:

1. Urban One UONEK - P/E: 8.03
2. AdTheorent Holding ADTH - P/E: 6.67
3. Cogent Comms Hldgs CCOI - P/E: 2.83
4. Jiayin Gr JFIN - P/E: 1.37
5. Liberty Latin America LILA - P/E: 7.62

Urban One's earnings per share for Q4 sits at $0.02, whereas in Q3, they were at 0.08. Most recently, AdTheorent Holding reported earnings per share at $0.09, whereas in Q1 earnings per share sat at $-0.06. Cogent Comms Hldgs has reported Q2 earnings per share at $-0.67, which has decreased by 615.38% compared to Q1, which was 0.13. Most recently, the company reported a dividend yield of 6.25%, which has increased by 1.17% from last quarter's yield of 5.08%.

This quarter, Jiayin Gr experienced an increase in earnings per share, which was $0.76 in Q1 and is now $0.84. Liberty Latin America's earnings per share for Q2 sits at $0.17, whereas in Q1, they were at -0.23.

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.