The Meaning Behind 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.
The following stocks are considered to be notable value stocks in the communication services sector:
- Mobile TeleSystems MBT - P/E: 9.5
- Jiayin Gr JFIN - P/E: 7.96
- Nexstar Media Group NXST - P/E: 8.85
- MSG Networks MSGN - P/E: 5.37
- Tegna TGNA - P/E: 9.57
Most recently, Mobile TeleSystems reported earnings per share at 0.1, whereas in Q3 earnings per share sat at 0.14. The company's most recent dividend yield sits at 5.28%, which has decreased by 7.36% from 12.64% last quarter.
Jiayin Gr looks to be undervalued. It possesses an EPS of 0.06, which has not changed since last quarter (Q3). Jiayin Gr does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Nexstar Media Group experienced an increase in earnings per share, which was 4.08 in Q3 and is now 7.97. Its most recent dividend yield is at 2.56%, which has ('', 'not changed') by 0.0% from 2.56% in the previous quarter.
This quarter, MSG Networks experienced an increase in earnings per share, which was 0.61 in Q1 and is now 0.72. MSG Networks does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Tegna reported earnings per share at 1.16, whereas in Q3 earnings per share sat at 0.59. The company's most recent dividend yield sits at 2.04%, which has increased by 0.45% from 1.59% 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.
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