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.
The following stocks are considered to be notable value stocks in the technology sector:
- Cheetah Mobile CMCM - P/E: 4.82
- China Index Holdings CIH - P/E: 3.8
- SunPower SPWR - P/E: 8.1
- Aviat Networks AVNW - P/E: 3.38
- Turtle Beach HEAR - P/E: 9.18
Cheetah Mobile has reported Q4 earnings per share at 0.07, which has decreased by 74.07% compared to Q3, which was 0.27. Cheetah Mobile does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
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.
Most recently, SunPower reported earnings per share at 0.05, whereas in Q4 earnings per share sat at 0.14. SunPower does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Most recently, Aviat Networks reported earnings per share at 0.49, whereas in Q2 earnings per share sat at 1.48. Aviat Networks does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
Turtle Beach has reported Q1 earnings per share at 0.52, which has decreased by 38.1% compared to Q4, which was 0.84. Turtle Beach 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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