What are Value Stocks?

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 technology sector:

1. China Index Holdings CIH - P/E: 3.78
2. O2Micro Intl OIIM - P/E: 0.46
3. MIND C.T.I. MNDO - P/E: 8.96
4. Turtle Beach HEAR - P/E: 6.9
5. Hamilton Beach Brands HBB - P/E: 9.81

China Index Holdings has reported Q3 earnings per share at 0.12, which has increased by 20.0% compared to Q2, which was 0.1. China Index Holdings does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, O2Micro Intl reported earnings per share at 0.1, whereas in Q2 earnings per share sat at 0.03. O2Micro Intl does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

MIND C.T.I. has been featured as a value stock. MIND C.T.I.'s Q3 EPS sits at 0.07, which has not changed since last quarter (Q2). The company’s most recent dividend yield sits at 11.0%, which has decreased by 0.36% from 11.36% last quarter.

Turtle Beach saw an increase in earnings per share from 0.42 in Q2 to 1.05 now. Turtle Beach does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Hamilton Beach Brands’s earnings per share for Q3 sits at -0.15, whereas in Q2, they were at 0.59. The company’s most recent dividend yield sits at 1.95%, which has decreased by 0.11% from 2.06% last quarter.

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.