5 Value Stocks In The Technology Sector

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.

Below is a list of notable value stocks in the technology sector:

1. Hamilton Beach Brands HBB - P/E: 9.56
2. Synnex SNX - P/E: 8.34
3. China Index Holdings CIH - P/E: 4.66
4. MIND C.T.I. MNDO - P/E: 9.77
5. Inpixon INPX - P/E: 0.08

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.

Most recently, Synnex reported earnings per share at 5.21, whereas in Q3 earnings per share sat at 3.33. Its most recent dividend yield is at 0.92%, which has decreased by 0.34% from 1.26% in the previous quarter.

This quarter, China Index Holdings experienced an increase in earnings per share, which was 0.1 in Q2 and is now 0.12. China Index Holdings 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). Its most recent dividend yield is at 11.0%, which has decreased by 0.36% from 11.36% in the previous quarter.

Inpixon has reported Q3 earnings per share at -0.13, which has increased by 38.1% compared to Q2, which was -0.21. Inpixon 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.