5 Value Stocks In The Technology Sector

What Defines a Value Stock?

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.

Benzinga Insights has compiled a list of value stocks in the technology sector that may be worth watching:

1. BM Technologies BMTX - P/E: 6.68
2. China Index Holdings CIH - P/E: 3.84
3. Bel Fuse BELFA - P/E: 9.33
4. Bel Fuse BELFB - P/E: 9.55
5. Cheetah Mobile CMCM - P/E: 3.67

This quarter, BM Technologies experienced an increase in earnings per share, which was -0.18 in Q4 and is now 0.25. BM Technologies does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, China Index Holdings experienced an increase in earnings per share, which was 0.12 in Q3 and is now 0.15. China Index Holdings does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

Bel Fuse's earnings per share for Q1 sits at -0.23, whereas in Q4, they were at 0.18. Its most recent dividend yield is at 1.34%, which has decreased by 0.1% from 1.44% in the previous quarter.

Most recently, Bel Fuse reported earnings per share at -0.23, whereas in Q4 earnings per share sat at 0.2. The company's most recent dividend yield sits at 1.7%, which has increased by 0.03% from 1.67% last quarter.

Cheetah Mobile has reported Q1 earnings per share at 0.08, which has increased by 14.29% compared to Q4, which was 0.07. Cheetah Mobile 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.