5 Value Stocks In The Communication Services Sector

The Meaning Behind 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:

1. Telefonica TEF - P/E: 3.06
2. Liberty Global LBTYA - P/E: 1.1
3. DISH Network DISH - P/E: 8.16
4. AMC Networks AMCX - P/E: 7.34
5. KT KT - P/E: 6.04

This quarter, Telefonica experienced a decrease in earnings per share, which was $0.09 in Q3 and is now $0.08. Most recently, the company reported a dividend yield of 7.6%, which has decreased by 2.33% from last quarter's yield of 9.93%.

Most recently, Liberty Global reported earnings per share at $1.26, whereas in Q3 earnings per share sat at $0.48. DISH Network's earnings per share for Q4 sits at $0.87, whereas in Q3, they were at 0.88. This quarter, AMC Networks experienced a decrease in earnings per share, which was $2.68 in Q3 and is now $0.54. This quarter, KT experienced a decrease in earnings per share, which was $0.57 in Q3 and is now $0.38.

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.