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. Viomi Technology Co VIOT - P/E: 9.69
2. MIND C.T.I. MNDO - P/E: 9.81
3. Nortech Systems NSYS - P/E: 5.69
4. Eltek ELTK - P/E: 9.78
5. VirnetX Hldg VHC - P/E: 1.3

Viomi Technology Co’s earnings per share for Q3 sits at 0.07, whereas in Q2, they were at 0.02. Viomi Technology Co 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.

Nortech Systems’s earnings per share for Q3 sits at -0.35, whereas in Q2, they were at -0.05. Nortech Systems does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Eltek saw a decrease in earnings per share from 0.16 in Q2 to 0.14 now. Eltek does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

VirnetX Hldg saw a decrease in earnings per share from -0.08 in Q1 to -0.11 now. VirnetX Hldg does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

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.