What Defines a Value Stock?
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.
Benzinga Insights has compiled a list of value stocks in the technology sector that may be worth watching:
- Vishay Intertechnology VSH - P/E: 8.5
- Socket Mobile SCKT - P/E: 5.86
- HP HPQ - P/E: 5.97
- Arrow Electronics ARW - P/E: 6.79
- Vontier VNT - P/E: 7.2
Vishay Intertechnology saw an increase in earnings per share from 0.62 in Q4 to $0.71 now. The company's most recent dividend yield sits at 2.02%, which has increased by 0.02% from 2.0% last quarter.
Most recently, Socket Mobile reported earnings per share at $0.04, whereas in Q4 earnings per share sat at $0.11. Most recently, HP reported earnings per share at $1.08, whereas in Q1 earnings per share sat at $1.1. Most recently, the company reported a dividend yield of 2.98%, which has increased by 0.27% from last quarter's yield of 2.71%.
Arrow Electronics has reported Q1 earnings per share at $5.43, which has increased by 1.12% compared to Q4, which was 5.37. Most recently, Vontier reported earnings per share at $0.7, whereas in Q4 earnings per share sat at $0.83. Most recently, the company reported a dividend yield of 0.36%, which has ('', 'not changed') by 0.0% from last quarter's yield of 0.36%.
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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