5 Value Stocks To Watch In The Technology Sector

What is a Value Stock?

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 technology sector:

1. Turtle Beach HEAR - P/E: 9.79
2. China Index Holdings CIH - P/E: 4.44
3. Synnex SNX - P/E: 8.47
4. O2Micro Intl OIIM - P/E: 0.55
5. MIND C.T.I. MNDO - P/E: 9.88

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.

China Index Holdings's earnings per share for Q3 sits at 0.12, whereas in Q2, they were at 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, Synnex reported earnings per share at 3.33, whereas in Q2 earnings per share sat at 1.83. Most recently, the company reported a dividend yield of 1.26%, which has decreased by 0.74% from last quarter's yield of 2.0%.

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. looks to be undervalued. It possesses an EPS of 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.

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.