Understanding 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.
Benzinga Insights has compiled a list of value stocks in the communication services sector that may be worth watching:
- DISH Network DISH - P/E: 4.99
- Harte-Hanks HHS - P/E: 5.35
- Townsquare Media TSQ - P/E: 6.4
- Thryv Holdings THRY - P/E: 9.4
- Urban One UONE - P/E: 4.98
DISH Network's earnings per share for Q1 sits at $0.68, whereas in Q4, they were at 0.87. This quarter, Harte-Hanks experienced an increase in earnings per share, which was $0.2 in Q4 and is now $0.39. The company's most recent dividend yield sits at 10.59%, which has increased by 0.76% from 9.83% last quarter.
Townsquare Media's earnings per share for Q1 sits at $0.19, whereas in Q4, they were at 0.16. Its most recent dividend yield is at 6.36%, which has increased by 2.15% from 4.21% in the previous quarter.
This quarter, Thryv Holdings experienced an increase in earnings per share, which was $0.13 in Q4 and is now $0.88. Urban One has reported Q1 earnings per share at $0.3, which has increased by 150.0% compared to Q4, which was 0.12.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.