5 Value Stocks To Watch In The Communication Services Sector

What is a Value Stock?

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.

The following stocks are considered to be notable value stocks in the communication services sector:

1. Nexstar Media Gr NXST - P/E: 8.65
2. Urban One UONE - P/E: 7.28
3. Steel Connect STCN - P/E: 9.27
4. Liberty Latin America LILAK - P/E: 9.56
5. Scienjoy Holding SJ - P/E: 9.51

Most recently, Nexstar Media Gr reported earnings per share at $2.64, whereas in Q1 earnings per share sat at $2.97. Its most recent dividend yield is at 2.97%, which has decreased by 0.16% from 3.13% in the previous quarter.

Urban One saw a decrease in earnings per share from 0.08 in Q3 to $0.02 now. Steel Connect's earnings per share for Q3 sits at $0.37, whereas in Q2, they were at -0.19. Liberty Latin America's earnings per share for Q2 sits at $0.17, whereas in Q1, they were at -0.23. Most recently, Scienjoy Holding reported earnings per share at $0.02, whereas in Q4 earnings per share sat at $0.04.

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.