Overview Of Value Stocks In The Technology Sector

The Meaning Behind 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 technology sector that may be worth watching:

1. Nokia NOK - P/E: 4.89
2. ChipMOS TECHNOLOGIES IMOS - P/E: 7.76
3. Daqo New Energy DQ - P/E: 1.97
4. Optical Cable OCC - P/E: 7.1
5. ASE Tech Holding Co ASX - P/E: 9.28

Nokia saw an increase in earnings per share from 0.06 in Q1 to $0.08 now. Most recently, the company reported a dividend yield of 3.41%, which has increased by 0.56% from last quarter's yield of 2.85%.

ChipMOS TECHNOLOGIES has reported Q1 earnings per share at $0.18, which has increased by 28.57% compared to Q4, which was 0.14. The company's most recent dividend yield sits at 8.81%, which has increased by 4.61% from 4.2% last quarter.

Daqo New Energy's earnings per share for Q1 sits at $3.93, whereas in Q4, they were at 5.11. Optical Cable saw an increase in earnings per share from 0.1 in Q1 to $0.31 now. Most recently, the company reported a dividend yield of 2.45%, which has ('', 'not changed') by 0.0% from last quarter's yield of 2.45%.

Most recently, ASE Tech Holding Co reported earnings per share at $0.12, whereas in Q1 earnings per share sat at $0.09. Its most recent dividend yield is at 7.45%, which has increased by 2.42% from 5.03% in the previous quarter.

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.