A Look Into Technology Sector Value Stocks

The Meaning Behind Value Stocks

A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.

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

1. China Index Holdings CIH - P/E: 4.82
2. Nortech Systems NSYS - P/E: 8.96
3. Synnex SNX - P/E: 9.26
4. Inpixon INPX - P/E: 0.08
5. Hamilton Beach Brands HBB - P/E: 8.75

Most recently, China Index Holdings reported earnings per share at 0.12, whereas in Q2 earnings per share sat 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.

Nortech Systems saw a decrease in earnings per share from -0.05 in Q2 to -0.35 now. Nortech Systems 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 5.21, whereas in Q3 earnings per share sat at 3.33. The company's most recent dividend yield sits at 0.92%, which has decreased by 0.34% from 1.26% last quarter.

Most recently, Inpixon reported earnings per share at -0.13, whereas in Q2 earnings per share sat at -0.21. Inpixon 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. Most recently, the company reported a dividend yield of 2.13%, which has increased by 0.18% from last quarter's yield of 1.95%.

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.