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 communication services sector that may be worth watching:
- Nexstar Media Gr NXST - P/E: 8.53
- Xunlei XNET - P/E: 7.79
- Hello Gr MOMO - P/E: 9.44
- SK Telecom Co SKM - P/E: 9.99
- Liberty TripAdvisor Hldgs LTRPA - P/E: 2.38
Nexstar Media Gr saw a decrease in earnings per share from 5.3 in Q4 to $2.97 now. The company's most recent dividend yield sits at 3.13%, which has increased by 0.38% from 2.75% last quarter.
Most recently, Xunlei reported earnings per share at $0.08, whereas in Q4 earnings per share sat at $0.05. Most recently, Hello Gr reported earnings per share at $0.34, whereas in Q4 earnings per share sat at $0.36. Most recently, SK Telecom Co reported earnings per share at $0.57, whereas in Q4 earnings per share sat at $0.39. This quarter, Liberty TripAdvisor Hldgs experienced a decrease in earnings per share, which was $0.26 in Q4 and is now $-0.41.
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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