5 Value Stocks In The Technology Sector

What are 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 technology sector:

1. China Index Holdings CIH - P/E: 4.53
2. Cheetah Mobile CMCM - P/E: 4.48
3. SunPower SPWR - P/E: 8.53
4. Eltek ELTK - P/E: 9.66
5. WidePoint WYY - P/E: 7.44

China Index Holdings has reported Q4 earnings per share at 0.15, which has increased by 25.0% compared to Q3, which was 0.12. China Index Holdings does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Cheetah Mobile experienced a decrease in earnings per share, which was 0.27 in Q3 and is now 0.07. Cheetah Mobile does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

SunPower saw an increase in earnings per share from -0.04 in Q3 to 0.14 now. SunPower does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Eltek's earnings per share for Q4 sits at 0.16, whereas in Q3, they were at 0.14. Eltek does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Most recently, WidePoint reported earnings per share at 0.96, whereas in Q3 earnings per share sat at 0.13. WidePoint 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.