Overview Of Value Stocks In The Communication Services 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.

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

1. Liberty Global LBTYA - P/E: 1.5
2. KT KT - P/E: 9.74
3. Meredith MDP - P/E: 6.81
4. Telefonica TEF - P/E: 2.6
5. Cango CANG - P/E: 1.18

Most recently, Liberty Global reported earnings per share at 19.55, whereas in Q1 earnings per share sat at 2.37. Liberty Global does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

KT's earnings per share for Q2 sits at 0.64, whereas in Q1, they were at 0.57. KT does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.

This quarter, Meredith experienced an increase in earnings per share, which was 0.53 in Q3 and is now 1.11. Most recently, the company reported a dividend yield of 7.92%, which has increased by 1.42% from last quarter's yield of 6.5%.

This quarter, Telefonica experienced a decrease in earnings per share, which was 0.22 in Q1 and is now 0.11. Its most recent dividend yield is at 9.93%, which has decreased by 1.33% from 11.26% in the previous quarter.

Cango's earnings per share for Q2 sits at 0.6, whereas in Q1, they were at -0.26. Cango 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.