Understanding 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 communication services sector:
- Tegna TGNA - P/E: 9.78
- Mobile TeleSystems MBT - P/E: 9.26
- Cango CANG - P/E: 0.99
- Turkcell Iletisim TKC - P/E: 7.87
- Gray Television GTN - P/E: 5.44
This quarter, Tegna experienced an increase in earnings per share, which was 0.59 in Q3 and is now 1.16. The company's most recent dividend yield sits at 2.04%, which has increased by 0.45% from 1.59% last quarter.
This quarter, Mobile TeleSystems experienced a decrease in earnings per share, which was 0.14 in Q3 and is now 0.1. Most recently, the company reported a dividend yield of 5.28%, which has decreased by 7.36% from last quarter's yield of 12.64%.
Cango's earnings per share for Q4 sits at 1.61, whereas in Q3, they were at 1.75. Cango does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
This quarter, Turkcell Iletisim experienced a decrease in earnings per share, which was 0.08 in Q3 and is now 0.06. Most recently, the company reported a dividend yield of 2.2%, which has decreased by 0.21% from last quarter's yield of 2.41%.
Most recently, Gray Television reported earnings per share at 2.26, whereas in Q3 earnings per share sat at 1.14. Gray Television 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.
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